Receivership

Administrative Receivership

An insolvency practitioner can be appointed as an administrative receiver by a lender, a secured creditor, when a company defaults on the terms of its borrowing from the secured creditor with a valid floating charge over the whole, or a substantial amount, of the company’s assets.

Though this is a procedure which has in effect been replaced by Administrations, as the charge required to appoint an administrative receive must have been created before 15 September 2003.

The administrative receiver will carry on the company’s business in order to realise the assets comprised in the charge to repay the secured and preferential creditors.