Receivership

Receivership is a legal process that occurs when a company is unable to pay its debts. A court appoints a receiver—someone independent and experienced—to take control of the company's assets. The receiver's goal is to manage the business and its finances, often to recover money for creditors. They may sell assets, restructure operations, or even run the company temporarily. Receivership helps ensure a fair process for creditors while seeking to maximize the value of the company or its assets, often as an alternative to bankruptcy.