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ARTICLE · 12 JUNE 2020

Demystifying the receivership process

Bartier Perry Solicitors
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A company goes into receivership when an independent person is appointed to protect the interests of a secured creditor.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Gavin Stuart
Gavin Stuart
Emma Boyce
Emma Boyce
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In this fourth and final instalment of the Demystifying Insolvency series, we focus on the receivership process.

A company goes into receivership when an independent and suitably qualified person (the receiver) is appointed by a secured creditor or the court and is tasked with taking control of some or all of the company's assets in order to protect the interests of the appointing creditor.

In this article we will focus primarily on receiver appointments by secured creditors and seek to clarify the interactions between receivers and other types of external administrations.

Receivership often occurs at the same time as other insolvency appointments such as provisional liquidation, liquidation, voluntary administration or when a company is subject to a deed of company arrangement. For more information on these processes, see our previous articles here: Demystifying Liquidations, Demystifying Administrations and Demystifying safe harbour.

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