Receivership

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