Filing Claims, Reviewing Claims and Satisfying Creditors in the Liquidation of a Company in Georgia

After the liquidation is announced, creditors must be able to file their claims with the designated contact point within the applicable deadline. A claim should clearly identify the creditor, the basis of the claim, the amount sought and its due date. Contracts, invoices, proof of performance, payment statements and documents relating to any security serve as supporting evidence. The liquidator records each filed claim in a claims register and reconciles it against the company’s contracts, supporting documents and accounting records. The legal basis, amount, due date, currency, security, payments already made and any possible counterclaims must be clarified. Accepted, partially accepted and disputed claims must be documented separately. Before any payments are made, the legally applicable priority of the reviewed claims must be determined. Secured claims, priority claims and other company liabilities must not be treated alike without review. For each payment to a creditor, the payee, amount, reason for payment and allocation to the relevant claim must be recorded in a verifiable manner. The available liquidation estate must be continually compared with both accepted and unresolved obligations. Reserves for disputed claims, winding-up costs, taxes and other foreseeable payments help prevent assets from being distributed too early. Payments to shareholders should be considered only after creditor claims and necessary provisions have been taken into account. If the overview shows a shortfall, further payments must be controlled and the company’s ability to pay reassessed. If the company cannot meet its due obligations, it must be examined whether voluntary liquidation may continue or whether Bankruptcy or another insolvency proceeding must be initiated. Claims lists, review notes, correspondence and payment records later form an important basis for formally closing the liquidation.