We have in-depth experience in the following areas of receivership:
- Administrative receivership
- Law of Property Act (LPA)
- Acting under the direction of the court
Administrative Receivership is an option that only secured creditors can use in the event that a business is in breach of borrowing covenants and seeks a remedy. The creditor, usually a financier, must have security and a floating charge over a substantial part or all of the assets of the business which pre-dates 15th September 2003. The granting of the floating charge or debenture provides the lender with the ability to appoint an Administrative Receiver whose principle duty is to secure repayment of the outstanding loan. In practice this option is not much used in the UK following a change of law in 2003, although there can be advantages to using this form of insolvency process, if available, which our team at Cork Gully are happy to advise on.
Law of Property Act (LPA)
Under the Law of Property Act 1925 a Receiver is a person (not always but often an insolvency practitioner) who is appointed to take charge of a mortgaged property by a lender whose loan is in default. Appointment of an LPA Receiver is usually to facilitate the sale of the property, but can also be used to collect rental income for the lender.
At Cork Gully we will work closely with other professional partners, such as commercial and contract consultants and quantity surveyors, to devise the best solution for the secured lender and other parties.
We can also act in cases where there is a commercial dispute as Court Appointed Receivers for example to enforce a judgement where a creditor has been successful with a claim.