REC: Reporting to Secured Creditors

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Overview

CCH Insolvency provides several Estimated Outcome Statement ("EOS") reports which provide comprehensive information to the secured creditor.  However, the appointment information, charge data and secured assets need to have the correct data.

Additionally, certain transactions are required to be correctly coded to appear on the EOS.

This section details the information required to ensure the charged assets report correctly.

Estimated Outcome Statements

The appointing bank, as a secured creditor, should have already been set up in the appointment details screen.  The same creditor must be entered in the secured creditor register and the property secured by the charge to that creditor recorded in order for the EOS to report properly.

1.    Go to General > Appointment > Method of Appointment.  There may be a number of similarly named counterparties, but each counterparty has a distinct ID.  To check this ID, click on the ellipsis at the end of the Appointor/Chargeholder field:

REC_Appointment_Details.png

Record the ID number for this counterparty.

REC_Appointment_Sec_Cred2.png

2.    In Financials > Creditors, double-click on secured creditor class then on the secured creditor (the appointing bank if there is more than one) to open the secured creditor record.

REC_Appointment_Sec_Cred0.png

Again, click on the ellipsis at the end of the Creditor Name field and confirm that the counterparty ID is the same as in step 1 above.

3.    Go to Claim and Securities.  Under Charge Description, double-click on the charge shown.

REC_Appointment_Security.png

Record details of the charge - security type (should be fixed), date granted and description of charge.  Properties subject to the charge should be in the right hand panel, as shown below:

REC_Appointment_Sec_Info.png

If no charges are shown in the Secured Creditor record, as shown below, click ‘New Security’ and enter the charge information as indicated above.  This has the effect of correctly linking the charge with the asset.

REC_Appointment_Sec_Cred.png

Click Save and Exit (twice).  Click Exit to leave the creditor screen.

Note

In certain circumstances, it may be necessary to delete the link between the charge and the asset, so that the property is no longer secured, and then reinstate the charge

Remove the asset subject to the charge (click Del button or red “<” key).  Save and Exit twice.

4.    To confirm the security has been properly recorded against the property, open the Asset Register.  Go to Financials > Assets, double-click on Land & Property, then double-click on (each) property shown.  The link shows how many charges are linked to the property:

REC_Appointment_Property1.png

Click the link to shown the charge-holder name and, if relevant, rank.

REC_Appointment_Sec_Cred_Rank.png

Estimated to Realise ("ERV") figures may also be input at this stage.  If ERV figures already added, this step is complete.

Check Receipts and Payments Allocations

It may be that historic transactions might not be properly allocated to a property.  These transactions will not display on the EOS for this reason.

1.    Open (default) bank account (Financials > Accounts – it should be the one with the property address attached/account number & sort code) – identify payments to chargeholder (if any).

2.    Reallocate receipts : Financial > Accounts and open bank account (identified in 3 above).  For each payment made in respect of the property, double-click to open and check the account (realisation – rent or sale) and the allocation (property, if more than one) are correct.

3.    Reallocate payments to secured creditors: Financials > Accounts and open ‘secured creditors (fixed):Claims’.  Ensure ‘allocation’ is made to the correct secured creditor (should be appointor/chargeholder – may differ if appointor is second chargeholder – confirm with Manager/Receiver of job).

Note

Current or recent transactions are required to be allocated to a property, so this section is only relevant to historic transactions which have yet to be allocated.

Additional Steps

You may also wish to confirm projections entered against expected proceeds of sale and the costs and expenses of the receivership.

Go to Financials > Position > Projections > Asset level projections.  Check ‘estimated future’ column.

Once the property has been sold, you may update the 'Est Completion Date' field in the Asset record:

REC_Property_Completed.png

This enables the 'Completion Date' column in the EOS to be populated:

REC_EOS_Completion.png

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