What is a Receivership?
A Receivership is used for the purpose of enforcing security and it will usually be a bank who appoints a Receiver on foot of a debenture which incorporates a fixed and/or floating charge over the assets of the company.

When is a Receivership suitable?
A Receivership is suitable in a variety of cases but arises primarily when the principal or interest under a debenture is in arrears or where a company is being placed in or is under threat of Liquidation.

What determines the powers of a Receiver?
The powers and duties of the Receiver will be dependent on the terms of the debenture under which he is appointed. The debenture will include conditions for the appointment of the Receiver which may include a loan being in arrears.

What are the duties of a Receiver?
The main duty of the Receiver is to realise the assets included in the debenture and to discharge the amount owing to the debenture holder. In the case of a debenture which incorporates a floating charge the Receiver must first discharge the preferential creditors in advance of making any payment to the debenture holder on foot of the Floating charge.

How can Hughes Blake assist?
• Act as Receiver
• Advise a company where a Receiver has been appointed

For more information, contact

Neil Hughes, Managing Partner – neil.hughes@hughesblake.ie or
Kieran McCarthy, Partner – kieran.mccarthy@hughesblake.ie