If you own a creditor claim against an insolvent company, your asset is useless until it pays you.  ClaimCloud is pleased to offer an alternative to waiting: sell your claim at a time that suits you for an agreed purchase price.

ClaimCloud understands that the distraction is not purely a matter of time and money.  Waiting for an uncertain future payment also has an emotional component that can distract from other priorities. Selling your claim lets you get back to what you are great at.

TIME

Complex insolvencies unfortunately take years to conclude. 

The exact duration is unpredictable and may be longer than expected: an academic study (2021) calculated the average duration of an Australian corporate winding up was more than 3 years.

ClaimCloud removes this timing uncertainty by buying creditor claims at a negotiated price whenever the creditor chooses.

Creditor claims against insolvent companies are notoriously uncertain.

Recovery can be influenced by many factors, some of which include:

 ·       The volume of priority claims such as employee entitlements or secured borrowings that rank ahead of a creditor’s specific class of claim;

·       The costs of the insolvency process itself, including remuneration paid to administrators or liquidators and legal fees; and

 ·       The distressed value of the company’s assets that the administrator or liquidator is able to realise through the insolvency process.

UNKNOWN RECOVERY

DISTRACTION

The distraction of administering a creditor claim in a corporate insolvency can be significant. 

Ongoing obligations may include:

·       Repeatedly providing paperwork and proofs of debt to the administrators or liquidators

·       Tracking the progress of the insolvency

·       Drafting internal update reports (relevant to corporate credit teams)

·       Attending creditor meetings

·       Managing the accounting and taxation treatment of the claim