What is Receivership?
Receivership is an insolvency procedure initiated by a secured lender, typically a bank, under the terms of a lending agreement. The lender appoints an Insolvency Practitioner (IP) as a receiver to recover its debts from the company.
Powers of Receivers
Receivers have broad authority, including the ability to sell the business as a going concern, continue trading operations, sell company assets, or close down the business entirely.
Trends in Receivership
Since legislative changes in 2002, banks have increasingly favoured Administration over receivership for debt recovery purposes, as indicated by current statistics.
FAQ's
Receivership is an insolvency process where a secured lender appoints a receiver to recover debts owed by a company.
Receivers can sell the business, continue trading, sell assets, or wind up operations as necessary to recover the lender's debts.
Legislative changes have made Administration a preferred choice for banks due to its effectiveness in debt recovery.
Yes, Receivers have the authority to sell company assets to repay the secured lender.
In some cases, yes. Receivers may trade the business on if it's viable or sell it as a going concern.
Employees' rights and job security are protected under insolvency laws during Receivership proceedings.
