Administrative Receivership
What is Administrative Receivership?
Administrative Receivership is an insolvency process initiated by a secured creditor with the benefit of a floating charge, usually a bank or a financial institution, where there has been a breach of the facility that has not been remedied by the borrower.
Administrative Receivers are appointed to sell the business and assets of the company in order to repay the sums owed to the secured creditor. It is a procedure used increasingly rarely because the security under which receivers are appointed must have been dated before 15 September 2003.
What is a debenture?
A debenture is the most common type of collateral given by a borrower to a lender to secure its debt. It usually gives the lender both fixed and floating charges over all of a borrower’s assets. By holding a debenture, a lender has access to a mechanism for taking control of the assets through the appointment of Administrative Receivers, who then sell them to repay all or as much of the outstanding debt and interest as possible.
Respond quickly if a lender is appointing Receivers
Preventing your company from being forced into Administrative Receivership depends on how far the lender has gone towards appointing Receivers and how quickly you act after becoming aware that the secured creditor is pursuing this route. If you have already breached the terms of your banking or loan agreement, you should contact us as soon as possible to discuss the alternative options which may still be available.
Advice on Administrative Receiverships
For more information on Administrative Receiverships, we offer an initial free consultation to assess the situation and recommend the best way forward. If this is Administrative Receivership, our specialists can support the business at every step of the way through the process.
Companies
Partnership
Individuals
To discuss your potential needs in the area of Administrative Receivership, please contact:
David Buchler
Jo Milner
How can we help you?
We offer initial free confidential advice without obligation.