Receiverships

Receiverships

Receiverships are a process by which a charge holder (a mortgage, debenture, charge or judgment mortgage holder) can appoint a Receiver to realise assets to repay the debt due to the charge holder. A Receiver can also be appointed by Court Order in certain cases. Depending on the nature of the original security documentation, the appointed Receiver can be an agent of the appointing charge holder or the borrower however only the charge holder or the Court can remove a Receiver once appointed. A Receiver can be appointed over all of a company’s assets or a single asset (often referred to as a fixed asset receiver). A Receiver can also be appointed over certain assets of individuals or partnerships. While the Receiver must be aware of other stakeholders and work within the confines of the regulatory framework and the powers conferred by the original security documentation, the Receiver’s main duty of care is to the appointing charge holder.