Administrative Receivership
Administrative Receivers are usually appointed by a bank or other lending institution which has been given a legal charge (known as a debenture) over the major part of the company’s assets.
Similarly to an Administrator, an Administrative Receiver is empowered to run the company’s business and realise its assets.
This might include selling the business as a ‘going concern’.
Receivership (Scotland)
In general, the powers given to a Scottish Receiver are similar to those of an Administrative Receiver. They are designed to enable the Receiver to carry on the company’s business with a view to selling it as a going concern.
Having settled debts due to preferential creditors first, the Receiver’s primary task is to satisfy the holder of the floating charge under which the appointment was made.
Because there are a number of minor differences between the process of Receivership in Scotland and the process of Administrative Receivership in England and Wales you should always seek advice from an expert in this field.
We can help you wherever your company is situated.