Insolvency - Receivership

Usually appointed under a debenture (loan document), and nearly always by a bank, a receiver is often appointed where the security holder becomes concerned that their investment is at risk or the company is financial difficulties.

Receivership for a company of course does not mean the end of that company and liquidation does not always follow. Our team can advise not only upon the appointment of a Receiver, but also other creditors concerning their own security (or lack of it) and what steps can be taken to intervene following such an appointment, or even pursuing a negligence claim against a receiver.

We have considerable experience of acting for and against receivers (Administrative and LPA) involving businesses in many industry sectors. We find that speed of service in this area is particularly important to our clients together with the ability to give careful and practical advice. Whilst there is legislation currently being brought in to eradicate the appointment of Receivers it remains to be seen how effective this will prove and for the time being Receivers are here to stay.