As a secured creditor, you have the right to:
- Appoint a receiver to realize some or all of the secured assets (even during liquidation).
- Request that the liquidator deal with the secured assets and account for the proceeds.
- Vote at creditor’s meetings for the amount of the debt which exceeds the value of their secured assets.
- Received dividends for the amount of the debt which exceeds the value of the secured assets.
In order to have the above rights, you will need to (generally) complete a formal proof of debt form and submit same to the liquidator for consideration, including any amounts of the debt which exceed the security. This will allow the liquidator to consider your debt and allocate dividends for the difference accordingly and in alignment with the unsecured creditors of the company.
Talk to our insolvency lawyers about your position as a secured creditor today.