Receivership is an immediate remedy that is available to secured creditors that hold a charge over either all the present and after-acquired assets of a company or over specific assets of the company.
Where a receiver has been appointed by secured creditor, the receiver has the ability to do what is necessary to realise the value of the assets. This may include actions such as continuing to trade a business or selling some of the assets to raise a return back to the receivers appointor.
It is common for the receiver to work in the best interests of the secured creditor that has appointed them. However, a reputable receiver will also have a general duty to the remainder of the creditors of the company.
If you are a secured creditor or GSA holder of a company and need to discuss your enforcement options, please contact us to discuss how we can assist you.
Other areas in Receivership: GSA, Asset Recovery
