Receivership

Question 1

Receiver is an insolvency practitioner who is

Answer 1

1) Appointed by a bank under its floating charge and is authorised
to sell the secured assets of the company in order to repay the band borrowing in preference to unsecured trade payables

Question 2

A secured creditor?

Answer 2

With a charge over an asset has the power to
appoint a Receiver in the event of the borrowers’ default

Question 3

2 types of Receiver

Answer 3

1) Administrative Receiver
2) Fixed charge Receiver

Question 4

Wha t is the fixed charge in Receivership?

Answer 4

It is attached to a specific asset or assets
For example:mortgage one a house

Question 5

What is the floating charge ?

Answer 5

it is attached to the company’s assets generally ( such as
stock and debtors )

Question 6

Receiver do not need to be

Answer 6

qualified insolvency practioner