Conclusion of winding-up proceedings

Should the Bank's assets be insufficient to pay all claims submitted against the Bank in full, the Winding Up Board may seek a composition with creditors to conclude the winding-up proceedings. Attempts to reach composition with creditors are covered by specific rules of the Bankruptcy Act.

If composition cannot be reached with creditors, the Bank's estate shall be subject to Bankruptcy proceedings at the request of the Winding Up Board. In this eventuality, actions taken by the Winding Up Board during the winding-up proceedings shall remain valid. Bankruptcy shall only be undertaken in the following instances:

• the Winding Up Board deems evident that there is no basis for seeking composition at any stage of the winding-up proceedings;
• a proposal for an arrangement with creditors has been rejected by creditors, pursuant to the rules which apply on the approval of and voting on arrangements with creditors;
• confirmation of an arrangement with creditors is rejected by the courts.

The right of a creditor to demand Bankruptcy proceedings is similar to the obligation of the Winding Up Board. Certain additional conditions apply to such a demand by a creditor, all of which must be satisfied:

• the creditor in question must hold a recognised claim against the Bank;
• the creditor in question must demonstrate that legal conditions for composition with creditors are lacking or that such a number of creditors are opposed to such composition that there is no possibility of its approval;
• the creditor in question must demonstrate that he has lawful interests at stake in demanding the liquidation of the bank rather than its continuing in winding-up proceedings.