Receivership

There are three main types of receivers; 1) administrative receivers, 2) LPA receivers and 3) fixed charge receivers.

1. With certain exceptions, administrative receivers may only be appointed by holders of a debenture executed before 15 September 2003. It offers the opportunity for a company to continue trading whilst searching for a buyer for all or some of the business assets and also provides the opportunity to retain company personnel during this time. The primary task of the administrative receiver is to realise the assets of the company for the benefit of the charge-holder.
2. In an LPA (Law of Property Act) receivership the receiver is appointed by the mortgagee to deal with a specific property, e.g. to receive income until such time as the asset is sold. The receiver has no responsibility for the other assets of the company which remain under the control of the directors.
3. Here the appointment is usually by a bank with a fixed charge over the company’s book debts and the receiver is empowered solely to deal with those debts for the benefit of the appointing bank. The company’s other assets remain the responsibility of the directors.

If you would like some more information on the receivership services we provide, please contact corporate.insolvency@aabrs.com