A receiver is appointed by a secured creditor, who will then collect and dispose of a company’s assets, so that they can be repaid of any debt owing to them.
Receivership Brisbane explained in simple terms.
Who is a Secured Creditor?
A secured creditor is an individual who holds a security interest over the assets of a company.
The Receivers Role
The receivership’s primary role is to work only on behalf of the secured creditor. Its purpose is to act as an independent third-party and sell off a company’s assets.
Their goal is to maximize the amount of money they can generate to satisfy their secured creditor/and or other creditors.
ASIC officers are authorised to inspect financial services businesses’ records. If they find any offence or matter out of the ordinary during this process, they have to report it to ASIC.
When Does Receivership End?
Receivership ends when the company has sold off its assets and distributed funds to repay the secured creditor.
To qualify for a release, the receiver must complete all receivership duties. The secured creditor keeps the receiver in place until the funds have been properly released. If you need advice from our professionals, please contact us using the information provided below.