l11 ip report

ip report

deadline

• must present the report to the commercial court within 2 months from the date of acceptance of appointment

• the judge can grant a time extention under speicifc complex parameters

core elements

• the report is the factual backbone of the insolvency proceedings

• it must contain

  • an analaysis of the debtors initial declaration

  • a evaluation of the debtors legal accounts and financial record

  • a hisotrical journal log detailing all major operational decisions and actions executed by the ip since the delaration

  • a reasoned expert explanation of the debtors true financial and asset sotuation

• mandatory attachments= the report is invalid unless it appends

  • the invneotry of the aggregate assets

  • the lis of recognised creditors/liabiltiies

determining the assets

• includes all of the debtors patrimonial and economic rights on the date insolvecny is declared

• includes any assets recovered or aquired during the process

• the ip must inventory each asset and assign it 2 disitinct valuations

  • real market value= the current market value on the day the inventory is drawn

  • liquidation value= the estimated cash value if the asset had to be sold off immediately under distressed conditions

determining the aggregate liabilities

the ip must

• review all outstanding debts

• verify their origin via supporting contracts.invoices

• organise them into a strict non negotiatble legal hierarchy

claims against the estate= top priority

• not insolvency credits; these are debts generated after the declaration to keep the bankruptcy process running

• these are paid out imediaely after the active cash pool before anyone else gets a cent

  • ip remuneration, court costs

  • utiltities for acive factor and work salaries for post decaration labour

insolvency claims= 4 tier ranking

• special privellage= credits secured by a physical collateral asset ie mortgages over real estate or pledges over machinary

  • paid out exclusively using the money generated from selling that specific asset

  • if a shortfall occurs the remaining debt drops to an ordinary rank

• general priv= paid sequentially using the remaining estate funds

  • back paid salaries capped at 3x the minimum wage

  • oustanding tax and ss debts

  • 50% of the claim belonging to the creditor who filed

• ordinary= paid only if funds remain after paying priority creditoes in full

  • usually recieve the most haircutes ie reduced amounts because they are last in line

  • standard trade suppliers, invoices, unsecured bank loans , non collaterlsised portions of priveelaged loans

• subordinated credits= paid last

  • legally barred from voting on debt restructuring agreements

  • usually fully written off it asets are insufficient

  • credits communicated late to the ip or post insolvency contratual interests or claims held by specially related persons of the debtor

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