Receivership occurs when a secured creditor or court puts a company under the governance of an independent insolvency practitioner to control part or all of a company's assets.
If a company is in financial difficulty, a secured creditor (or sometimes the court) may put the company under the control of an independent person who can be a Receiver or a Receiver and Manager. A Receiver's role in relation to managing receiverships is to:
- Collect and sell enough of the charged assets to repay the debt owed to the secured creditor (this may include selling some assets or the company's whole business);
- Pay out the money collected in the order required by law but principally looking to recover the secured creditor’s debt
A Receiver owes no duty to unsecured creditors other than a general duty of care.
If you are in need of a Receiver to recover your secured debt and wish to discuss how we might be able to assist you, please phone our Sydney office (02) 8346 6000, Melbourne office (03) 9679 2222, Adelaide (08) 8373 5588 or Newcastle office on (02) 4962 2688.