A receiver & manager or controller is appointed to take over business operations where it has defaulted on its obligations to its financier. The role of the appointee is to realise the company’s property which has been pledged to the financier. The appointee acts for the secured party.
Prior to enforcing its contractual rights, sometimes the secured party will have appointed an insolvency practitioner as an investigating accountant to review the affairs of the company on its behalf. Alternatively, the secured party may act to affect an appointment with only limited consultation with the directors.
While most receivership appointments are initiated by the secured party, in some instances a director may make a direct approach to their financier and request such an appointment occur.
The Brooke Bird team can provide advice to businesses experiencing difficulty maintaining cash flow and profitability. We can also act as Investigating Accountants to assist secured creditors in the decision-making process.
You might also be interested in:
- Small Business Restructure
- Business Rescue & Health Diagnostic
- Liquidations
- Voluntary Administration/Deeds of Company Arrangement