A receivership may be a short term event when compared to other insolvency situations.
The receiver is appointed by a secured lender to the company. Their task is to convert assets into cash to repay the secured lender before being released.
The receiver will still take over the powers of managing the business assets during the term of the receivership. But if, after the receiver has realised assets to repay, subject to the securities of the appointor, there is still a trading business remaining, it will be returned into the hands of the directors or a liquidator if one has been appointed.
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