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 small, large or all portions of the security over a company’s assets.
The Receivers Role
The receivers’ primary role is to work only in the favor of the secured creditor. Their purpose is to act and sell off a company’s assets.
Their goal is to generate maximum money that will help pay the secured creditor/and or other creditors.
If they sense/find any offences or matters out of the ordinary during this process, they have to report it to ASIC.
When Does Receivership End?
Receivership ends when they have sold off assets and distributed funds to repay the secured creditor. They must also have completed all receivership duties. Once all is done, the secured creditor will then release the receiver or they will retire. Hope this helps? but if you need more help contact us using the details below.
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