Although the purpose of appointment may vary, courts commonly appoint receivers in the following situations:
Secured creditors seeking to protect their collateral pending foreclosure or sale may seek the appointment of a receiver over a specific asset. The receiver may be charged with construction, marketing, sale and operation of commercial real estate and the marshaling and liquidation of other business assets.
A receiver may also be appointed over all of the property of a company and usually displaces the owners’ ability to control, manage, or operate the property during litigation. The receiver will encounter a number of practical and legal challenges as they take control of the company, investigate the financial affairs of the company, and assert claims necessary to maximize the value of the receivership estate.
In divorce cases disputes often arise as to the value and disposition of assets. Often when one spouse controls a business, information can be concealed or manipulated to the detriment of the other spouse. A receiver can investigate the finances of a company and report back to the court and the parties. Other cases involve gridlock over the sale of homes, where one party has possession and has an economic or emotional disincentive to sell them. A receiver can be appointed to run a fair and transparent sale process to bring closure to the case.
Although not as common as other types of receiverships, one of the most powerful tools in the judgment creditor’s arsenal is the appointment of a receiver to aid in collection. At times ordinary execution efforts fall short and the appointment of a receiver can allow for efficient and quick possession of assets as well as provide an incentive for the judgment debtor to settle the case.
As an agent with the Court, a receiver needs to demonstrate the experience, talents, credibility and professionalism to ably represent the Court and report the status of the receivership to the Court. We have earned a reputation for efficiency in all aspects of the management of assets of a receivership estate. Our receivership Team supports the receiver and boasts a tight knit group of well-trained and extremely effective asset managers. Through the leadership of the receiver, our receivership Team deploys paralegal staff, property management, an established reputation and credibility with government agencies and regulators, as well as a network of established vendor relationships to cost effectively monetize assets for the Court. Our receivership Team is also backed with the full support of more than fifteen commercial litigation and creditor’s rights attorneys located across seven offices, who bring the breadth and depth of experience necessary to handle receivership matters of any size or complexity. Our insolvency attorneys also, when necessary, work with other professionals practicing in corporate and securities, real estate, tax, or intellectual property law to find solutions to even the most complex legal, financial and business issue that may arise in insolvency and receivership matters.
Our Team understands the strategic use of receiverships from both the private party’s perspective and the enforcement agency’s perspective. Our pervasive understanding of the unique challenges associated with receivership law allows us to maximize the result of the receivership process, most crucially by delivering expedient and informed management of the receivership estate directly to the Court.
Receiverships often involve fraud, mismanagement, and distressed property. Our Team is proud to have the practical experience to probe and uncover these incidents, and where required, Simon PLC attorneys have the legal knowledge of receivership law necessary to support our receivership Team to achieve results despite the challenging circumstances.