Receiverships occur where a Creditor, normally a bank, will have lent money to a company and it will have secured the loan by what is called a Debenture. The Debenture is simply a document recording the terms of the loan. The Debenture will be registered against the companies assets. If the company defaults on its loan, the bank may seek to recover its money by appointing a Receiver.
The Receiver’s role is to take possession of the assets of the company for the banks benefit. The Receiver will then sell those assets and pay the bank back its money.
When the Receiver has ceased to act, he must send the register of companies a statement of opinion as to whether the company is solvent.
If you would like to obtain legal advice on Receivership or advice about the options for a solvent or an insolvent company, Healy O’Connor Solicitors LLP Corporate Recovery can provide cost-effective solution driven legal advice. Please call us on our Freephone number at 1800 54 54 54 or email firstname.lastname@example.org