Receivership


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Related to Receivership: liquidation

Receivership

In corporate bankruptcy, a situation in which a court or regulator appoints a custodian to administer all assets and debts. This custodian is known as a receiver; his/her duty is to pay off as many debts as possible as cheaply as possible. One obvious way to do this is to liquidate the company, but this is not always done. The receiver may restructure the company to put it on a path toward solvency.

In the United States, different financial regulators have the authority to decide whether receiverships are necessary. The Office of Thrift Supervision may do this for savings and loans; the Office of the Comptroller of the Currency for national banks. In any federally-chartered savings and loan or bank, the FDIC must be appointed receiver.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
A decision in the receivership case continues to haunt KPH.
(4) The receiver shall account for all receipts, disbursements and distributions of money and property of the receivership estate.
The auditors did note that flower sales may have been under declared by Sh114,363, which could lead to VAT dues of Sh15,774.On the health of the company, Deloitte noted that the company was making losses before and during receivership, hence it was difficult to expressly blame statutory managers for its current predicament.RECEIVERSHIPKaruturi Limited, Rhea Holdings and Surya Holdings amended the suit they filed in 2014 to stop receivership, and now insist that Stanbic cost them billions by illegally taking over management of their flower business.
The receiver eventually sold LSI's property, and the District Court approved the receiver's final distribution of the receivership assets.
On March 17, 2011, the BSP MB placed Banco Filipino under receivership of PDIC and then ordered its liquidation on October 27, 2011, after determining that it cannot continue its business without involving probable losses to its depositors and creditors.
In addition, a person who had a receivership order cancelled was responsible to manage his or her assets and repay debts and therefore has no movable or immovable PROPERTY in receivership or verifiable debts that could be forgiven.
'No ARA or similar contract shall bind the conservator, receiver, or liquidator; the company under conservatorship, receivership or liquidation and its policyholders; and/or the reinsurers, unless said ARA or similar contract is duly approved by the insurance commissioner,' according to the circular.
STX Offshore, once the world's fourth-biggest shipbuilder by orders, was placed under court receivership in 2016 and graduated from the program last July.
According to Reuters, the apex bank said that it would extend the receivership by a year.
Once the receivership process officially commenced, Cedar Springs Capital ramped up its efforts, performing on-site due diligence in Portland, Oregon before presenting its initial fund restructuring proposal to the court-appointed receiver in June 2016.
While some states have since introduced a semblance of accountability in their receivership process (see, for example, Texas), little has been accomplished nationally over the years to improve the insurance receivership process or address its well-documented deficiencies-a lack of transparency, accountability and oversight.
The Receivership Model Law Working Group, part of the Financial Condition Committee at the National Association of Insurance Commissioners, now has a long-term care insurance issuer insolvency project on its official to-do list.