Companies Act 2014 section 558O

Requirements following giving of notice to creditor under section 558K

Section 558O sets out the obligations on creditors who receive a notice from a process adviser during a rescue process for a small or micro company, and the steps the process adviser must take if a creditor fails to respond.

• Creditors must acknowledge receipt of the process adviser's notice in writing within 7 days and provide the requested information within 14 days
• If a creditor fails to acknowledge the notice, the process adviser must issue a reminder notice giving the creditor 72 hours to respond; failure to respond means the creditor is deemed to have received the original notice
• If a creditor fails to provide the requested information, the process adviser may estimate the creditor's claim value based on the company's books and records, and use that estimate in preparing a rescue plan
• The process adviser must keep records of how the reminder notice was delivered, and failure by the process adviser to issue the reminder notice or keep such records is a category 3 offence