A receivership can be thought of as a legal action where control of a company is taken from management and a receiver is appointed to run the company. Receivership can be part of the terms of a bankruptcy ruling.
Different conditions can lead to the establishment of a receivership. For example, the creditors of a financially distressed company can ask that a receiver be named, in order to preserve as many of the company’s assets as possible. Creditors seek to be repaid; the receiver seeks to pull the company out of debt to the greatest possible extent.
In most cases the receiver is given ultimate decision-making powers and has full discretion in managing the company and its debts. The receiver’s powers may be dictated by statute, court order, or financing agreements. Whether the source of the debt is creditors or unpaid loans, the receiver must choose the best way to discharge that debt.
If you would like more information or need assistance from an attorney regarding receivership actions, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide Arizona residents and businesses with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.