Receivership
Definition of 'Receivership'A type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company. The receiver may be appointed by a bankruptcy court, as a matter of private proceedings, or by a governing body. In most cases the receiver is given ultimate decision-making powers and has full discretion in deciding how the received assets will be managed. |
|
Investopedia explains 'Receivership'The primary responsibility of the receiver is to recoup as much of the unpaid loans as possible. Being in receivership is not an enviable situation for any 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, as its assets are sold at deep discounts in order to recoup some of the monies owed. |
Related Definitions
Articles Of Interest
-
An Overview Of Corporate Bankruptcy
If a company files for bankruptcy, stockholders have the most to lose. Find out why. -
The History Of The FDIC
Find out why this corporation was developed and how it protects depositors from bank failure. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Finding Solid Buy-And-Hold Stocks
Find out how to look at the big picture - even when the market's short-term outlook is less than rosy. -
Bankruptcy
Learn what happens when an individual or an organization files for bankruptcy. -
6 Decisions That Cost Companies Millions
Here are some of the worst business decisions of all time, made across a broad range of sectors and industries. -
Mezzanine Financing
Learn about this alternative method of financing companies use to finance expansion. -
Corporate Bonds: An Introduction To Credit Risk
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy. -
5 Ways To Boost Your Firm's Value
In today's tough business environment, firms have to get creative with ways to boost value for their shareholders. -
A New Plan To Prevent Future Bailouts
This new and innovative plan by the FDIC could help the government avoid the next bailout.
Free Annual Reports