IVA Glossary
A
Administrative Receivership
Administrative receivership is the process by which an appointed professional (an administrative receiver) is being called to solve certain financial matters of a company or partnership. Most of the times, the appointed professional is being represented by an insolvency practitioner, or an accountant who has a vast experience in handling insolvency related matters.
The professional becomes responsible for the property and all of its assets, and especially how these are being handled. Through administrative receivership, there will be solved debtor-creditor matters through a very fair process. Through administrative receivership there will be mostly solved cases in which companies have taken out secured loans from creditors, but for some reason they default on their loans. Thus, administrative receivers have under their jurisdiction the most important financial aspects of the respective company, up until a fair solution is found, and creditors recuperate their losses.
The professional becomes responsible for the property and all of its assets, and especially how these are being handled. Through administrative receivership, there will be solved debtor-creditor matters through a very fair process. Through administrative receivership there will be mostly solved cases in which companies have taken out secured loans from creditors, but for some reason they default on their loans. Thus, administrative receivers have under their jurisdiction the most important financial aspects of the respective company, up until a fair solution is found, and creditors recuperate their losses.
