We understand the stress involved in managing loan-related disputes and the potential impact it may have on your affairs. If a company owes you money and you hold a perfected security interest against them, our team of Licensed Insolvency Trustees (LITs) have the experience as receivers to support you in recovering the maximum value of your loans.
Our Licensed Insolvency Trustees approach receivership with an entrepreneurial mindset. When a business is experiencing financial difficulties, we understand that problems can run deeper than the balance sheet. Our team takes the time to learn a business’ story, identify the root cause of financial setbacks, and find solutions to maximize the lender’s or creditors’ returns - all while respecting the business and its people.
A Receiver will be appointed either privately, acting as an agent for the secured lender and taking action in the interests of the secured lender; or by the court. Court-appointed receivers are officers of the court, acting on behalf of all creditors regardless of who initiated the proceeding. The powers and rights of a court-appointed receiver are outlined in the court order appointing them.
Whether court or privately appointed, our duty is to distribute the net proceeds of all the assets subject to the secured creditors’ interest. In the event there may be value in continuing the operations and selling the business is a going concern, a secured creditor may consider the appointment of a Receiver-Manager.
Receivership can also be useful if you are involved in a shareholder dispute. A receiver can perform operations, complete projects, liquidate assets or sell a business.
Interim receivership is a remedy available under the Bankruptcy and Insolvency Act to protect assets of a company undergoing a formal insolvency process. Crowe MacKay & Company’s Licensed Insolvency Trustees have been appointed interim receivers to carry out duties and roles such as:
Monitoring and controlling assets and disbursements
Disposing of depreciating property
Taking conservatory measures
An interim receiver is appointed temporarily and cannot manage or execute the debtor’s day-to-day operations.
To appoint an interim receiver, the petitioning creditor must provide evidence to the court that the debtor’s assets are in jeopardy and the appointment is necessary for the protection and preservation of the estate.
To learn more about receiverships, contact our team of trusted advisors or complete the form below. We look forward to speaking with you.
Crowe MacKay & Company follows the practices laid out by the Canadian Anti-Spam Legislation and respects the privacy concerns of our clients and contacts.