Thursday, March 26, 2009

Swedish Law – Company Reorganisation – Compulsory Composition (continued)

Only creditors whose claims arose prior to the application for company reorganisation may participate in composition proceedings.

A creditor whose claim may be satisfied through set-off or whose claim is subject to rights of priority may not participate in the proceedings. If a creditor has a subordinated claim, he is not allowed to participate in the composition proceedings, unless the other creditors who are participating in the proceedings should consent to this.

If a creditor waives its rights of set-off or priority, in whole or in part, the creditor may participate in the proceedings to a corresponding extent. It should be noted that a creditor may participate in the proceedings, even if his claim is not due and payable or is tied to certain conditions in order to be payable.

(to be continued)

No comments: