From which moment is a non-interest-bearing claim of indefinite maturity, or a periodic-payment claim of uncertain amount, valued in a rehabilitation proceeding?
General information · Not legal advice
Material to check
In the practice exercise, we read the ruling commencing the rehabilitation proceeding to fix the date the provision turns on, the underlying contract for interest terms that would make the claim interest-bearing, and the creditor's statement of claim showing the periodic payments and whether their amount or duration is set.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading takes the commencement of the rehabilitation proceeding as the single valuation date: a claim that is both 'non-interest-bearing' and of 'indefinite maturity' is fixed at the valuation amount as of that moment, and a periodic-payment claim whose amount or duration is indefinite is put on the same footing by the closing words 'the same shall apply'.
Another reading notes that the provision settles only the date, not the figure: it says the claim is 'valued at the amount as of the time the rehabilitation proceeding is commenced' while giving no method for that valuation, leaving open how a periodic-payment claim whose duration is indefinite is reduced to a single amount.
Your judgment
Where the underlying contract leaves the duration of the periodic payments open, what in the practice file shows the position as it stood at the moment the proceeding commenced?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to set a different valuation date or to prescribe a method of valuation, or if a court decision explains how a periodic-payment claim of indefinite duration is reduced to a valuation amount.