When a company runs into financial trouble and is unable to turn around its financial performance, it may default on its loan obligations. With an appropriate debenture, a company’s secured lender(s) can exercise its right under the debenture to appoint Receivers and Managers to take control of the charged assets with a view of disposing of the same in order to settle the debts owing to the secured lender.
In addition, Receivers and Managers may also be appointed by the Court upon an application by an aggrieved party who has not been granted a debenture. The aggrieved party may be a creditor or shareholder of the company and the appointment is typically to safeguard and preserve the company’s assets pending resolution of the dispute in question.
Our licensed liquidators have acted as the Receivers and Managers under appointments via debentures as well as by the Court.