A Receiver is usually appointed by a creditor holding a valid registered charge over the assets of the company. The registered charge must allow for the appointment of a Receiver.
The charge can be fixed over specific assets, floating over all assets or a combination of both. The Receiver’s role is to administer the property under the charge and realise it for the benefit of the chargeholder. The Receiver acts on behalf of the secured creditor, rather than the creditors in general, although must not infringe on the rights of other classes of creditor in achieving the objectives of his or her appointment.
Alternatively a Receiver can be appointed by the Court on application by a relevant party. The Court Order will determine the objectives of the appointment. This process is more often than not used as a remedy for irreconcilable dispute, and a means to protect the assets and business of a company that may be in jeopardy although the entity may not be insolvent.
The proceeds of the fixed charge assets are paid to the charge holder after accounting for the Receiver’s remuneration and expenses. The floating charge assets are distributed firstly in payment of the Receiver’s remuneration and expenses in realising those assets and secondly to the priority creditors of the company. Any surplus funds are then distributed to the chargeholder under its floating charge.
Shaw Gidley have substantial experience in private and court appointments having been appointed Receivers by major banks and private lenders over the past 13 years. Shaw Gidley have developed a reputation with secured lenders by consistently achieving the objectives of the appointment in a cost effective professional manner.
If you wish to make an enquiry, please use the enquiry form on the right and one of our Corporate Insolvency Services Team will respond to you in the near future.