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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » what does it mean when a company goes into receivership?

what does it mean when a company goes into receivership?

please explain the process and what generally happens.

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One Response to "what does it mean when a company goes into receivership?"

  1. mylilbubbers says:
    Administrative receivership is a procedure in common law countries whereby a creditor can enforce security against a company’s assets in an effort to obtain repayment of the secured debt. It used to be the most popular method of enforcement by secured creditors, but recent legislative reform in many jurisdictions has reduced its significance considerably in certain countries.[1]

    Administrative receivership differs from simple receivership in that an administrative receiver is appointed over all of the assets and undertaking of the company. This means that an administrative receiver can normally only be appointed by the holder of a floating charge. Because of this unusual role, insolvency legislation usually grants wider powers to administrative receivers, but also controls the exercise of those powers to try and mitigate potential prejudice to unsecured creditors.

    Characteristically an administrative receiver will be an accountant with considerable experience of insolvency matters.

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