Receivership

Receivership

A type of bankruptcy a company enters when a receiver is appointed by bankruptcy courts or creditors to run the company.

Notes:

The responsibility of the receiver is to recoup as much of the unpaid loans as possible.

Being in receivership is not an enviable situation for a company. Often receivers find that the best way to pay back loans is to liquidate the company's assets, which would effectively put it out of business.

See also: Bankruptcy, Bankruptcy Risk, Debt, Discharge in Bankruptcy, Receiver