Receivership Update

This note provides a summary of some of the more recent developments in relation to receivership in Ireland.  The insight will cover:

1. The formalities to be observed in appointing receivers
2. Lis pendens registered over receivership property

The formalities for the appointment of Receivers

The key thing to remember in appointing a Receiver is to ensure that the Deed of Appointment reflects the language contained in the Debenture providing for the appointment.  Unfortunately, a significant amount of time and money was spent by charge holders in mending their hand after it transpired that borrowers were able to unseat a receiver due to errors in the Deed of Appointment.  The Courts have tended to side with the borrower in circumstances where the debenture holder was generally in a stronger position than the borrower.