What Is Receivership Of A Company?
“Receivership” is one way a secured creditor (usually a bank that is owed money) can attempt to collect the money they are owed.
Receivership of a company occurs when a secured creditor appoints a receiver to take control of some or all of the company’s assets. In particular circumstances, a receiver may be assigned by the court.
A receiver is an independent and suitably qualified person. Their role is to collect and sell enough of the charged assets to repay the debt owed to the secured creditor, pay out the money collected in the order required by law, and report any possible offences or irregularities to ASIC. The receiver’s primary duty is to the secured creditor that appointed them.
What Is Receivership and What To Expect?
- The receiver will collect and sell enough assets to repay the secured creditors’ debt.
- After the raised money has been distributed to the creditors
- Any funds or assets left over are paid to the company or external administrators.
Andrew Bell
Expert Insolvency Advisor
Andrew’s clients come to him because they know they are getting the best service possible. With the support of the expert team at the Liquidation Advisory Centre, he has been helping people and company directors make intelligent financial choices and advised on different options to achieve business financial stability for over 30 years.
Get a complimentary first consultation by calling 1300 887 210 to find out about your options and receive expert advice on Business Insolvency and Business Liquidation.
