Administrative Receivership, which can often be confused with Administration, is the appointment of Insolvency Practitioner ("IP") by a creditor who holds a floating charge over the assets of the company. It is likely that the creditor concerned will be a financier, i.e. a financial institution such as a bank who will have been granted a debenture as security over the assets of the company, incorporating fixed and floating charges, or private individuals who have loaned funds to the company.
Who Can Benefit From it?
The granting of the floating charge provides the lender with the ability to appoint an Administrative Receiver whose principle duty is to secure repayment of the outstanding loan.
