Who are pre-preferential creditors?

Answer 1

This is achieved by amending the status of some creditors' claims - making them effectively

pre-preferential.

For example, under Spanish law, claims of an administrative and labour-related nature are not

automatically suspended on the date of the declaration of the bankruptcy. Under Polish law,

secured creditors with rights in rem may enforce their claims against encumbered assets in an

arrangement bankruptcy (the claims are not covered by the arrangement proceedings to the

extent they are covered by security) and initiate enforcement proceedings. In some EU

Member States, the court has the power to lift the stay. Under Swedish law, upon the issuing of a bankruptcy order, a landlord is entitled to terminate the debtor's lease. If commercial

premises are involved and the bankruptcy administrator fails to assume liability for the

tenant's obligations during the term of the relevant lease within one month from demand, the

landlord may repossess the premises. Under German law, the security interest and ownership

interest of creditors with rights to preferential treatment may only be realized after the

Creditors' Report Meeting has been held. If after the Creditors' Report Meeting, the insolvency

administrator decides to use the property for the insolvency estate, he must pay a

rent/interest to those creditors with a security interest in the insolvency estate. In the UK,

amounts becoming due under a lease during the period that an administrator is in beneficial

occupation are expenses of the estate.