Receiverships and Assignments for the Benefit of Creditors
A powerful tool for a secured creditor can be the appointment of a receiver. KMK helps our clients navigate all of the intricacies related to the receivership. KMK regularly assists in the selection of the receiver and identifying the receiver’s authority and responsibilities during the appointment to assist a lender in taking control of its collateral during the pendency of an action.
Occasionally, a trade creditor is faced with the appointment of a receiver or a proceeding for an Assignment for the Benefit of Creditors. KMK attorneys also are familiar with assisting trade creditors in their interactions with such receivers or assignees. Selling to a receiver has its own peculiar pitfalls, and ensuring prompt payment from an operating receiver is a must.