1E9Ct5D

surrender of its collateral. If the collateral has been sold by the administrator, thesecured creditor should be entitled to the net proceeds of the sale. 34A preferential claim is a claim that arose during the insolvency proceeding. Theseclaims might include the administrator’s fees and expenses, court costs, claims ofcreditors that loaned money or extended credit to the administrator, and claims ofsocial plans for costs incurred during the insolvency under employment laws.Creditors with preferential claims are paid in full before any payment is made toholders of unsecured claims.An unsecured or general insolvency claim is a claim held by a creditor against theinsolvent company before the insolvency proceedin was opened.Generalinsolvency claims are often held by banks holding unsecured notes, bondholders,trade creditors, and contracting parties. A creditor holding a nonpreferential,unsecured general insolvency claim must file its claim with the administrator in orderto receive any payment in the insolvency proceeding. 35The administrator eitherrejects the filed claim or registers it with the insolvency schedule. If the administratorrejects the claim, 36 the creditor can bring a legal action to enforce the administratorto accept it.If the administrator accepts the claim, the unsecured creditor is entitled to a paymentfrom the insolvency estate on a pro rata basis with other unsecured generalinsolvency creditors, This payment will be made in accordance with the “insolvencyquota” that is determined by the insolvency administrator at the end of the insolvency34 Insolvenzordnung [InsO] [Insolvency Statute], Oct. 5, 1994 [Bundesgesetzblatt] (BGBl.] 2866, aslast amended by Art. 6 G of the Act of August 31, 2013 [BGBl.], 3533, §§ 47 ff.35 Insolvenzordnung [InsO] [Insolvency Statute], Oct. 5, 1994 [Bundesgesetzblatt] (BGBl.] 2866, aslast amended by Art. 6 G of the Act of August 31, 2013 [BGBl.], 3533, § 38.36 The administrator may reject the claim for reasons specified in the insolvency law, such as whenthe creditor has received a preferential transfer that the administrator can recover, or for generalreasons, such as the creditor’s failure to provide proof of the debt.25