Fixed Charge Receivership

Fixed Charge Receivership is a legal process where a lender appoints a receiver to manage and sell specific assets of a borrower who has defaulted on a loan. This typically occurs when the lender has a "fixed charge" on particular assets, meaning they have a legal claim over them. The receiver's role is to protect the value of these assets, conduct their sale, and distribute the proceeds to the lender to recover the owed debt. This process helps ensure that the lender can recoup their investment while minimizing losses from the borrower's financial difficulties.