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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Under the Liquidation Process Regulations, the liquidator of Pinnacle Foods Ltd receives a claim on 10 June in response to the public announcement. Within how many days of receipt must he verify it, and within how many days of admitting or rejecting it must he communicate the decision with reasons to the stakeholder?

The liquidator must verify a claim within seven days of receiving it and communicate his admission or rejection decision, along with reasons, to the stakeholder within seven days of making that decision. Both periods are seven days.

  1. AVerify within 30 days; communicate within 7 days
  2. BVerify within 7 days; communicate within 14 days
  3. CVerify within 14 days; communicate within 14 days
  4. DVerify within 7 days; communicate within 7 daysCorrect

Explanation

Regulation 30(1) requires verification within seven days of receipt of the claim. Regulation 30(3) requires communication of the decision, along with reasons, to the stakeholder within seven days of admission or rejection. So both periods are seven days. The other options use a 14 or 30 day period that appears nowhere in these provisions.

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