Receivership
Where a company has granted security over its assets to a debenture holder but is unable to meet repayments due to that debenture holder, the lender may be entitled to appoint an Receiver to safeguard the company's assets in lieu of repayments. The Receiver is entitled to sell these assets to pay any monies due to the debenture holder.
The Receiver owes his duty to the debenture holder, not the company or its creditors. The Receiver will sell any part of the business that can be sold as a going concern. The employees will usually transfer to the new owners of the business. Depending on the offers received the Receiver may sell the company to existing managers or shareholders.
However, it may not be possible to rescue even a part of the business.
If you need to discuss your situation we have more than 25 years experience in dealing with solvent & insolvent companies and would be happy to meet for a free consultation.