The Gallagher Law Firm and its attorneys frequently serves as receivers to collect and conserve certain assets and to make distributions when businesses are having trouble managing their assets. The principal objective is usually preservation of the assets pending a decision as to who should receive the property, or the liquidation of the assets and the distribution of the proceeds to the parties entitled to them.
A receivership may be general in character in that it comprises all the assets of the individual, partnership, or corporation, or it may be special, involving only the property subject to litigation. A receiver will ascertain what the prospects for a floundering business are and either create a plan to save the business and recover its financial stability or decide whether to sell some or all of the assets, the business as a whole, or to continue operating until a better deal can be achieved. The receiver pays the preferential debts such as employee claims for arrears of pay first from any floating charge collections. If a deal is to be done with directors, the receiver must first advertise the business and its assets for sale.
The Gallagher Law Firm understands the benefits and drawbacks of receiverships and can work with creditors and debtors to achieve the best outcome for all involved.