IVA Glossary
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Administrative Receiver
The administrative receiver is the professional who is in charge of collecting and distributing debts owed by companies or partnerships to the creditors. The whole process itself is called administrative receivership. Most commonly, the debts that can be recuperated through administrative receivership are the secured debts. For example, a company takes out a business loan, by offering as security collateral (a property like a commercial residence). Then, if the borrower defaults on his/her loan, creditors can recuperate their losses through administrative receivership.
The administrative receiver is being appointed as the main professional who shall deal with the financial problems involved in the debt issue. An administrative receiver, as a professional must have strong skills in dealing with insolvency related matters.
Administrative receivers are professionals who are generally being appointed by courts, or directly by the holder of the floating charge (the creditor). As a main duty, the professional will try to get back on track the business by suggesting a fair process to be undertaken in order for the company to get out of debt. If there is no favorable result in the process, as a next step the administrative receiver will implement certain measures in order to help creditors recuperate their loss.
The administrative receiver is being appointed as the main professional who shall deal with the financial problems involved in the debt issue. An administrative receiver, as a professional must have strong skills in dealing with insolvency related matters.
Administrative receivers are professionals who are generally being appointed by courts, or directly by the holder of the floating charge (the creditor). As a main duty, the professional will try to get back on track the business by suggesting a fair process to be undertaken in order for the company to get out of debt. If there is no favorable result in the process, as a next step the administrative receiver will implement certain measures in order to help creditors recuperate their loss.
