— CORPORATE RECOVERY AND INSOLVENCY
Receiverships
A Receiver Manager is appointed according to the terms of a debenture secured by floating charge. Receivership is a fast and effective procedure that can secure the rights of the debenture holder.
It allows the debenture holder to have full access to the activities and management of the company and gives them responsibility for its viability and solvency.
A Receiver Manager’s mandate may be to exercise pressure to come forward for negotiations, to find solutions in the scenario of a disagreeing board, to put an end to mismanagement and in the scenario of a dead-end, to make a fast effort to liquidate assets and repay company debt.
Evaluation of the structure of the company, management, products, financing etc, are a part of the duties of a Receiver. The challenge for Receivers is to help companies survive, find solutions to overcome their obstacles and management back to the owners in a more sustainable condition. Ideally, it could be a win-win situation for the debenture holder and the company owners.
Our team
- Our team can carry out proper investigations and provide a detailed report of our findings to the debenture holder, with recommendations how best to proceed based on our expertise. Our reports are sophisticated, unbiased, fair and provide an in-depth analysis of company affairs.
- Members of our team have been extensively involved in Receiverships with important knowledge and expertise in trading businesses. Moreover, our team members have been involved in Administrative Receiverships in the UK, dealing primarily with the sale of assets on a break down basis.
- We retain high expertise in evaluating the effect of floating charges over the assets and business of companies and we are in a position to advise Banks accordingly.
- We can offer pre-appointment review and consult with Banks on strategies in realizing securities and recovering debt.
- Alternatively, we can act on behalf of banks in negotiating debts prior to appointment and advice on settlement options.
- At the same time, we retain the requisite expertise to advise on the closure of Receiverships or on the switch to liquidation.
Administrative Receivership
Our multi-disciplined team is able to start work immediately upon appointment. With practical hands-on experience of running businesses in many different sectors, we are able to anticipate potential issues and deal with them before they can become problematic.
We adopt a structured approach and carry out a detailed review upon appointment of all key business functions. This enables us to communicate a strategic and operational plan to all key stakeholders.
As part of the strategic plan, we identify the critical issues concerning operations, financial control, staffing & human resources, and corporate compliance.
The goal of the strategic plan is to identify a clear and concise strategy to operate the business in a way which allow the company to either be returned back to the owners in a healthy and if possible profitable condition, or, to be sold as a viable going-concern entity and maximize the return to the charge holder.
Fixed Charge Receivership
We have the knowledge in various industry sectors of taking charge of assets under fixed charges and meeting the fixed charge holder’s strategy as to whether an asset should be placed on the market immediately, or leased until a profitable sale opportunity arises.
We adopt a 6 stage strategy for dealing with fixed charge receiverships:
- Stabilisation of the asset
- Determination of the appropriate strategy
- Management of the asset
- Disposal of the asset
- Handover of the proceeds to fixed charge holder
- Negotiation of arrangement with borrower regarding their related liabilities to the fixed charge holder
How can we Help
- We can carry out an independent investigation into the company’s affairs for the debenture holder to determine if the company should be financially supported to continue operations with a new business plan, or if a receiver should be appointed.
- We can advise on basic tactical issues.
- We can act as Receiver Manager.
It will be our pleasure to have a personalised consultation with you, so feel free to contact us.
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