Corporate Insolvency

Receivership

When secured creditors leverage control

Secured creditors appreciate that what they've loaned or provided is worth protecting and used security interests to sure up their asset in cases where payment or business relationship expectations aren't being satisfactorily met. Unlike other corporate insolvency appointments, the receiver's duty and focus is to primary secured creditor who made the appointment.

Background

Secured creditors have options to recover what's owed

A receivership's purpose is for a secured creditor to take control via a third-party known as a receiver (or receiver and manager) to assume control of some or all of the company's assets. A receiver taking control means potentially protecting, collecting, and selling those assets to repay the debt the company owes to the secured creditor.

FAQs

Some questions you may like answered.

A secured creditor can take action to protect, collect and sell some or all the company’s assets. This is done for the company to repay debts owed to the secured creditor.

A secured creditor holds a security interest, such as a mortgage, in some or all the company’s assets, to secure a debt they are owed by a company. For example, lenders might require a security interest in company assets when they provide a loan.

An unsecured creditor does not hold a security interest in relation to a debt they’re owed by a company. However some some types of employees ( as creditors) take priority in insolvency administrations to certain limits and conditions.

Dual insolvency appointments can be made over the same company when there's a receiver (or receiver and manager) appointed for a secured creditor. This means an unsecured creditor can apply to court to place the company into liquidation to recoup on an unpaid debt they're owed.

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Jason Bettles

Principal, Gold Coast, Northern NSW

Jason Bettles

Principal, Gold Coast, Northern NSW

Aaron Lucan

Principal, Western Sydney, Central West

Aaron Lucan

Principal, Western Sydney, Central West

Stephen Hundy

Principal, Canberra, Wollongong

Stephen Hundy

Principal, Canberra, Wollongong

Matthew Kucianksi

Principal, Melbourne, Ringwood

Matthew Kucianksi

Principal, Melbourne, Ringwood

T: 03 9613 5518

F: 03 9613 5599

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Mervyn Kitay

Principal, Perth

Mervyn Kitay

Principal, Perth

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