A company most commonly goes into receivership when a receiver is appointed by a secured creditor who holds security or a charge over some or all of the company’s assets. The receiver’s primary role is to collect and sell the company’s assets subject to the relevant security interest to repay the debt owed to the secured creditor.
Unlike an administrator or a liquidator, both of whom are required to act in the best interests of all creditors, a receiver only owes a duty to the creditor who appointed them (usually a large secured creditor such as a bank).
Rowe Bristol Lawyers has extensive experience in providing legal advice and service in respect of receiverships and corporate insolvency generally, including:
- advising and acting for company directors;
- advising and acting for creditors; and
- advising and acting for receivers and other insolvency practitioners.
If you require legal advice in respect of any aspect of receiverships, please contact us to arrange a meeting so that we may consider and advise you on your specific circumstances.
The above information is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.