Law of Property Act (LPA) Receiverships
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A review may conclude that a business is insolvent and therefore continued trading in the long term is impossible.
In these circumstances, steps must be taken to place the company into a formal state of insolvency in order to protect the position of the creditors and directors.
An administrative receiver is the person appointed by the holder (normally a bank) of a floating charge debenture over a company's assets. An administrative receiver has wide powers, allowing trading to continue and preserving the ability to sell the business as a going concern. Even if the business cannot be sold, actions can be taken to enhance asset value prior to realisation.
The primary role of an administrative receiver is to realise and collect the assets of the company to repay the debenture holder. It is no longer possible to appoint an administrative receiver under a debenture created after 15 September 2003. This is to limit the influence of banks and other secured lenders in insolvency proceedings.
Why choose Haslers?
At Haslers, we pride ourselves on giving realistic and commercial advice, as well as having the ability to recognise and deal with the sensitivities of any particular insolvency situation.
For more information please contact our Insolvency Team.
