In a receivership, the role of the receiver is to act in the interest of the charge holder and realise the assets for their benefit.
Where a receiver has a specific charge over one asset, normally book debts or a property, then a fixed charge receiver can be appointed. Their role is only to deal with realising the charged asset, without becoming involved in any other of the statutory obligations associated with administration. This, in the right circumstances, can provide a far better and cheaper alternative the other processes.
The role of an administrative receiver is similar the that of an administrator and will involve dealing with all of the company’s assets, either through trading with a view to a sale of the business as a whole, or on a controlled close down of the business, improving the value of the assets when compared to liquidation.
The option of appointing a receiver is one that all secured lenders should consider as it will allow you to remain in control of the process to realise the assets over which you have security.
Our team of receivership specialists has significant experience in receiverships and frequently provides advice to lenders in respect of their rights and on the options available to best maximise the realisable value of their security.