Administrative Receivership

Administrative receivership is a legal process where a company facing financial difficulties appoints an administrative receiver, usually a licensed insolvency practitioner, to take control of its assets and operations. This receiver’s primary goal is to recover debts owed to creditors, often by selling the company’s assets or restructuring its operations. Unlike traditional receivership, the administrative receiver focuses on maximizing the value of the business rather than just liquidating assets. This process provides a structured way to address financial distress, aiming to protect both the company and its stakeholders while trying to settle outstanding obligations.