When a debtor is declared bankrupt, a contingent claim that is certain but not yet liquid and due can be filed and accepted on a provisional basis.

Creditors are responsible for determining the value of their contingent claims, and the trustee in bankruptcy must set aside a corresponding share of the proceeds to satisfy such claims. For clarity, this article uses an example of a bankrupt Luxembourg company that acts as a guarantor for landlords for the payment of rent by certain affiliated tenant companies.

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Source: International Law Office - July 2022

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