Receiverships & Assignments for the Benefit of Creditors
Put simply, a receivership takes control of a property’s management out of the hands of a borrower and, at the direction of a court, gives control to a neutral third party (the receiver) who operates all aspects of the property to preserve its value until its sold.
KMK helps clients navigate all the intricacies related to the receivership process. Our attorneys regularly assist in the selection of the receiver and identify 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: an insolvency proceeding governed by state law rather than federal bankruptcy law. KMK attorneys are equally familiar with this strategy, 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 vital. Our attorneys’ depth of experience and the array of resources available to them provide you with the necessary knowledge and expertise you need to protect your interests in these unique situations.