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Receivership is one way a secured creditor (usually a bank who is owed money) can attempt to collect the money they are owed. A company goes into receivership when a receiver is appointed by a secured creditor to take control of some or all of the company’s assets. In special circumstances a receiver may be appointed by the court.
What does the receivership process involve?
Acting as your independent receiver, our primary duty is to you – the secured creditor. The receivership process can take weeks or months. During this time, we will:
- Collect and sell enough of the charged assets to repay the debt owed
- Pay out the money collected to you – the secured creditor
- Distribute any leftover funds or assets to the company or external administrators
- Report any possible offences or irregularities to ASIC
What are the benefits of receivership?
- Control of the company’s assets
- Increased control of the company’s business’ and the timing of decisions
- Unpaid debts can be recovered
- Stabilise and help turnaround the business