Receivership via Security Holder

What is Receivership via Security Holder?

Receivership is a process in which a legally appointed receiver acts as a custodian of a company’s assets or business operations.

A receivership is appointed either by a Court or the holder of a Security Interest in the property of the Company.

The receiver’s primary role is to collect and sell the company’s assets to repay the debt owed to the secured creditor.

In most cases, the receiver is given ultimate decision-making powers and has full discretion in deciding how to manage received assets.

If a receiver has, under the terms of their appointment, the power to manage the company’s affairs, they are known as a receiver and manager.

The receiver’s role is to:

collect and sell enough of the charged assets (collateral) to repay the debt owed to the secured creditor (this may include selling assets or the company’s business);
pay out the money collected in the order required by law; and
report to ASIC any possible offences or other irregular matters they come across.

Who is Receivership via Security Holder for?

A company goes into receivership when it is facing financial difficulty and a Secured Creditor or the Court takes action.

It is possible for a company in receivership to also be in liquidation, voluntary administration or subject to a deed of company arrangement.

Why do you need Receivership via Security Holder?

If you are a Secured Creditor of a company that is facing financial difficulties, Receivership via Security Holder is a way to recover debts owed to you.

For the Company, it allows for a situation of financial strain to be resolved and debt to be settled.

How can Offermans help?

Experience: As Townsville first locally-owned, independent specialist insolvency accounting practice in Townsville, we have over 20 years’ experience helping businesses through this process.

Expertise: Our staff has a wide variety of expertise and qualifications including law, allowing us to provide you the information to make informed choices to achieve the right solution for you.

Ethics: We provide professional, judgement-free, confidential and fully independent services to guide you or your business through any financial situation.

The Process

In a few steps our team can help make sense of your situation, formulate a plan that’s right for you and put it in place to achieve a solution that achieves your financial future free from unpayable debts.

Confidential & complimentary 1-hour consultation
Quote for services specific to your individual needs
Offermans to Develop Strategy
Offermans implement strategy
You achieve peace-of-mind and financial freedom

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