Insolvency Practitioners,
Registered Auditors & Accountants,
Tax Consultants.

Tel: 091 565 953 Email: info@cobtax.com

Receivership is a method for a charge holder to recover outstanding borrowings where a loan under a debenture has defaulted. The function of a receiver appointed by the debenture holder is to take possession of the assets subject to the charge held by the debenture holder.

Is a Receivership suitable?

A receivership may be suitable for the following reasons:

• The company is being placed into liquidation by way of a creditors winding up or where a petition to wind up by the High Court has been presented

• If a company is considering restructuring methods such as an Informal Scheme of Arrangement but has not sought the protection of the Court

• The principal and or interest on the debenture is in arrears

• If the company ceases trading

The Receiver

A receiver has a duty to secure the assets of the company, realise those assets and manage the affairs of a company with a view to maximising the return to the charge holder.

In certain instances the receiver may decide to continue on the company's business with a view to increasing the value of the assets of the company or perhaps even to sell on the business as a going concern.

The receiver's duties and powers depend largely on the terms of the debenture under which they were appointed.

How O'Boyle & Associates can help?

At O'Boyle & Associates, we can act as Receivers. We can perform an independent review of the activities of the company for the debenture holder to determine if a receiver should be appointed.

For further information on Receivership or any aspect of Insolvency, please do not hesitate to contact us.