Creditors
Creditors FAQs
What type of creditor am I?
Creditors are classified as to the type of claim they have, these types will determine the quantum of distribution they will receive as the funds for each type is ring fenced.
The three main types of creditor are:
Secured;
Preferential; and
Unsecured
Secured creditors have security registered against the School. When they have a fixed/standard charge over an asset, the secured creditor will be paid out of the realisations from that specific asset, after the costs of realisation have been deducted.
Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. As of December 2020 this will also include certain aspects of HMRC’s claim, these claims will rank as secondary preferential claims (paid after the first ranking preferential claims) and consist of the VAT, PAYE and NIC deductions. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no standard charge registered.
Unsecured creditors are all other unsecured and non-preferential creditors (with the exception of shareholders/members). These are usually the normal “trade” creditors. They rank below preferential and secured creditors.
What further information will I receive?
The Trustee in Bankruptcy will write to all known creditors of the School (per the creditor list obtained from the School’s books and records) to formally notify them of the sequestration appointment within 60 days. This will be accompanied by a general website notice informing creditors that all future documents intended for creditors (with certain exceptions) will be posted to a website rather than being delivered by post.
The Trustee in Bankruptcy is also required to provide a written update on the sequestration to all known creditors every 12 months. This report will be published on the website within two weeks of every 12 month anniversary.
Estimated timeframe for reviewing my claim and paying a dividend?
The sequestration process is complex and it takes time to assess the School’s position and provide an estimate of the value or timing for reviewing claims and making a distribution. The Trustee in Bankruptcy will include an update of dividend prospects and, if possible, a timeframe in their reports.
Based on current information however, we don’t anticipate there being enough funds available to enable a return to unsecured creditors. The outcome for creditors will be dependent on the overall realisations and level of costs in the sequestration process and we will update creditors should this position change.
Will you refund the costs incurred in preparing a claim?
We are unable to refund the costs in preparing a claim. Consequently, we cannot refund any expenses incurred in obtaining information necessary to make a claim.
How to submit a claim
A claim form is available to view and download below, please submit your claim to us at uk_kilgraston_creditors@pwc.com
In preparation for submitting your claim please ensure that you have all relevant details such as your order confirmation or receipt, invoices or other documentation demonstrating the amount owed to you.
