What Is Receivership?
If a company is unable to clear its debts, there are several tools that it can adopt to help it pay up its creditors. One of these tools is receivership.
So, what is receivership?
Receivership is a tool appointed by the court. It is used to assist creditors to recover funds in default. Receiverships can help troubled companies avoid bankruptcy. It can be either voluntary, or court appointed. Voluntary receivership is receivership that the company initiates, usually as part of its restructuring process. The aim is to return the company to profitability.
In a receivership, the court appoints an independent “receiver” or “trustee”. This person is the one who effectively manages all aspects of the troubled company’s business.
At Crest Lawyers, our receivership lawyers are trusted professionals who have helped companies go through the process of receivership. We understand the obligations and rights of both creditors and debtors, and we give legal counsel that brings the best possible outcome.
Is your company in debt and unable to pay its debts?
Has the court already appointed a receiver?
Are you eager to return your company in receivership to profitability?
Then you need an expert receivership lawyer to help you.
What Does It Mean When A Company Goes Into Receivership?
If a secured creditor appoints a receiver, such a receiver will generally act only on behalf of the creditor that appointed them, but court-appointed receivers act on behalf of all the creditors. The receiver must be independent; they have had no prior business relationship with either the borrower or lender.
If the company is going through a restructuring, the appointed receiver has the ultimate decision-making power over the company’s assets and management decisions. His power includes the authority to stop paying dividends or other interest payments. The receiver also ensures that all the company’s operations comply with the government’s regulations, while the company is still maximising profits.
In some cases, a receiver may choose to shed some company assets in order to pay some creditors and bring the company into a period of recovery. If all these fail, the court may order the company’s assets to be liquidated. In that case, a liquidator comes in and oversees the sale of the company’s assets to repay the creditors. When all the assets are sold, the company then ceases to exist.
Crest Lawyers are committed to seeing that our clients go through the process of receivership peacefully and without any stress. We will put in our best in order to ensure that we achieve the best possible outcome.
The following are the services that we can render to a company in receivership:
Legal advice concerning receiverships
Creditors statutory demand
Bankruptcy legal advice
Rights and obligations
Formal creditor agreements
Fixed charge over assets
Floating charge over assets
Business structure review
Our professional law services are top quality, practical and honest. We look out for our clients’ best interests.
Gold Coast Receivership Lawyers Providing Care, Compassion and Confidentiality
At Crest Lawyers, we are dedicated to helping you go through your business challenges and financial distress. With care, compassion and confidentiality, we will ensure that the process of receivership does not leave you distressed.
We will do all we can to help your company avoid bankruptcy and return to profitability. Our receivership and restructuring services are exceptional and of the highest calibre. Our expert lawyers provide a full range of legal services to clients on the Gold Coast across a range of matters including family, corporate, property law and more! We also charge affordable fees, and have flexible pricing structures.
Is your company going through a receivership? Then you need a compassionate and expert receivership lawyer. Don’t go any further. Call us on 07 5538 0999 or contact us today.