Receivership occurs when a secured creditor (financier) appoints a Receiver, Receiver and Manager or Controller to a company or asset to realise the asset/s of the company to repay the secured creditor’s debt.
The appointment is made pursuant to the secured creditor’s security documentation.
The Receiver’s role is to:
- collect and sell enough of the charged assets to repay the debt owed to the secured creditor (this may include selling assets or the company’s business)
- pay out the money collected in the order required by law, and
- report to ASIC any possible offences or other irregular matters they come across.
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The team at Rapsey Griffiths have extensive experience in all forms of secured creditor enforcement. Contact the team at Rapsey Griffiths for a confidential consultation.