The WA Insolvency Solutions team have considerable experience in acting as Receivers, or Receivers and Managers, for financial institutions and other secured creditors and also on court appointments to resolve partnership disputes.
A Receiver will normally be appointed under the terms of the security document such as a General Security Agreement, for the purposes of receiving and realising assets and then distributing the proceeds to the secured creditor. Receivers and Managers have additional powers available to also manager a business.
On most occasions a Receiver is appointed by the secured creditor on terms specified in the General Security Agreement and primarily acts in the interests of the secured creditor. It is common for a Receiver and Manager to be appointed at the same time as a Voluntary Administrator is appointed to a company. The Receiver and Manager will act for the secured creditor, while the Voluntary Administrator will look after the interests of the unsecured creditors.
Occasionally the Court may appoint a Receiver or Receivers and Managers. This generally arises where there is a partnership dispute and the Court makes the appointment so that the dispute can be resolved by an independent party. This often requires a detailed examination of the financial records of the partnership and the disposal of the partnership assets.
The role of the Receiver, or Receiver and Manager will typically include:
- undertaking an immediate assessment of the assets available for realisation and settlement of the debt owing to the secured creditor;
- reporting back to the secured creditor on a regular basis the results of investigations and details of current trading;
- realisation of the secured assets either individually or by sale of a business as a going concern; and
- payment of the secured debt and any other debts with preferential entitlement, such as employee entitlements.
For more information on Receiverships go to Receivership: a guide for creditors or contact our office.
Whether you are looking for help with your company, business or personal affairs, we can help you find a solution for your financial problems.