1E9Ct5D

c. England and WalesThe English statutory order of priority in distribution is (i) secured creditors, (ii)preferential creditors (now very restricted to capped employment claims), and (iii)unsecured creditors. There is a slight variation to this order, in that a proportionof floating charge realizations (as opposed to the other type of secured creditorwith a fixed lien) is made available to unsecured creditors (known as “ringfencing”).Unsecured creditors submit a “proof of debt” to the office holder, who thenadjudicates the claim for dividend purposes. The office holder may accept theproof, reject it, or partly admit it. The creditor has a right of appeal and adverseddecision to the Court. Unsecured creditors receive dividends on a pro-rata/parripassu basis with other unsecured creditors.Secured creditors have far stronger rights and can often take control orpossession of the secured assets in question. If the secured creditor cannot takecontrol or possession of the collateral, but instead the collateral is sold, the officeholder is obliged to account to the secured creditor for the funds realized andattributable to the collateral.9. Administrative Insolvencya. GermanyIf the insolvency estate lacks the assets needed to satisfy all preferential claims –that is, claims arising during the administraton of the insolvency estate – theadministrator will notify the Court that a “state of mass insufficiency” exists. 41This41 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, § 208.28