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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » What does it mean when a company is said to be in receivership?

What does it mean when a company is said to be in receivership?

Who does that affect the employees? Would you join a company in receivership?

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3 Responses to "What does it mean when a company is said to be in receivership?"

  1. jake says:
    http://en.wikipedia.org/wiki/Receivership

    Receivership is used to denote a situation in which an institution or enterprise is being held by a receiver. In law, a receiver is a person “placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights.”

  2. Mary L says:
    Recievership generally means that the company “recieved” is subject to licensing or certification or other government oversight and has been taken over and is being managed by a “reciever” appointed by the government (usually the court) in order to protect the public through orderly transition while the company is either put back into viable condition or dissolved. Recievership most often occurs because of severe financial problems most often caused by very poor management or mismanagement which may involve violation of laws. Some companies can survive, and others cannot. How and to what extent non-management employees are effected depends on many, many factors, including the importance of the company in recievership to its customers (such as a nursing home in recievership to protect the residents) and whether the company is expected to survive or go into bankruptcy. Personally, if I could find any other job, I would not join a company in recievership other than as the reciever.
  3. Ed Atun says:
    It usually means that they are in bankruptcy. If they are lucky, they will emerge from the BK intact and functioning. If they are unlucky, their assets will be sold off and the business closed. In either case it is not a good thing for the employees. Some will be fired; others will be paid less.

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