Receivership

Objective

Protect the interest and security of a lender via the preservation and/or sale of assets under a debenture.

Description

These administrations are often used where there is a deadlock between the company and its secured lender or when the company is in distress and is unable to meet its financial obligations.

The appointment of a receiver and/ or manager is to either preserve or sell the securitised assets under the debenture and the proceeds will be used to settle in priority the debt owing to the debenture holder.