As appointed Receivers, we:
Safeguarding Secured Creditors
Our Receivership services focus on protecting secured creditors’ interests.
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Recover funds to repay the appointer’s debt
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Realise company assets efficiently (may involve a sale of the business and/or it’s assets)
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The Receiver has a duty to their appointer (secured creditor)
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Manage troubled assets professionally
What is Receivership
Receivership is a legal process where a receiver is appointed to manage and sell a company’s assets to repay secured creditors. This is typically initiated when a company defaults on a secured loan or fails to meet its financial obligations to a secured creditor.
Receivership benefits
- Creditor Recovery: Primarily benefits secured creditors by ensuring that their debts are repaid from the proceeds of asset sales.
- Asset Management: The Receiver takes control of and manages the company’s assets, realising assets for the benefit of Secured creditor debt.
- Focused Resolution: Provides a structured approach to dealing with a company’s financial difficulties, focusing on asset realisation.
Receivership process
- Appointment: A Receiver is appointed by a secured creditor, typically due to the company’s failure to meet its debt obligations.
- Control and Management: The Receiver takes control of the company’s assets and operations, often continuing to run the business whilst undertaking a sale process.
- Asset Realisation: The Receiver sells the company’s assets and uses the proceeds to repay the secured creditor debt.
- Debt Settlement: After secured debts are repaid, any remaining funds may be used to address unsecured creditors, though this is less common.
- Conclusion: Once all assets are sold and debts are settled, the Receiver’s role concludes, and the company may proceed to liquidation if necessary.
If you are a secured creditor and are considering appointing a Receiver, contact us now.
