Where individuals or companies hold a debenture (created on or before 15 September 2003), usually in the form of fixed and floating charges, we can be appointed to act as administrative receiver through the powers provided by the debenture. This may occur where a company breaches the terms of its borrowing from a creditor with a floating charge. Many companies give a charge to banks as security for their borrowing. This will involve realising the "charged" assets of the company and accounting to the debenture holder for sums received under the terms of the charge. Unlike in a liquidation, the insolvency practitioner is not responsible for distributing available funds to creditors other than the debenture holder and preferential creditors. The insolvency practitioner works for the debenture holder to ensure that realisations are maximised to achieve the best possible outcome.
At turpin barker armstrong we have licensed insolvency practitioners who are authorised to act as receivers of a company. We are also experienced in LPA receivership, which is where lenders appoint a receiver over property in accordance with the Land and Property Act 1925.
If you are a lender, or are acting for a lender, and are seeking to appoint a receiver or LPA receiver over a secured asset please feel free to contact our office on 0208 661 7878 and our experienced staff will be able to assist you.