Receivership

What Does Receivership Mean?
A type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company.

Investopedia explains Receivership
The responsibility of the receiver is to recoup as much of the unpaid loans as possible.

Being in receivership is not an enviable situation for a company. Oftentimes, receivers find that the best way to pay back loans is to liquidate the company's assets, which effectively puts the company out of business.