Court Appointed Receivership

Court-appointed receivership refers to a legal process where a court appoints a neutral third party, known as a receiver, to manage a company's assets or operations. This often occurs when the business is struggling financially, facing legal issues, or cannot pay its creditors. The receiver's role is to protect and preserve the assets, oversee the business operations, and ensure that obligations to creditors are met. This arrangement helps stabilize the business and may lead to its restructuring or eventual sale, all under the court's supervision to ensure fairness and compliance with the law.