Company unable to pay its debts.

Pressure from unsecured creditors or secured creditors.

Dispute between the directors or shareholders.

Default on loan repayments to secured lenders.

Appointment of a Liquidator or Administrator.

On-going losses and inability to improve trading performance.

Can occur when

• a secured lender wishes to recover its loan
• an interested party (such as a shareholder, director or investor) makes an application to the Court

Receiver will realise the company's assets and disburse the funds according to law.

Can be used to safeguard assets in the interim whilst other Court action proceeds.

Court appointed Receivers can be used in dispute circumstances.  

Independent person controls the assets of the business.

Independent person manages those assets to recover all or part of the debt for a secured creditor.

Potential to trade on the company and sell business as going concern.

Control taken out of the hands of the directors.

Limited investigations of company's affairs can be conducted by Receivers.