Receivership occurs when a secured creditor appoints either a Receiver, Receiver and manager or a Controller to a company or asset to realise either the Company’s assets or the Company in its entirety to repay the secured creditor’s debt.
The Receivers role is to collect and sell enough of the charged assets to repay the debt owed to the secured creditor and this may include selling the company's business.
The money that has been collected is then paid back in the order required by law.
If any possible offenses or other irregular matters are found the Receiver then reports these back to ASIC.
For more detailed information on Receivership please contact the team at Chifley Insolvency as they have extensive experience in all forms of Secured Creditor Enforcement.
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