Receivership

A secured creditor can appoint a Receiver Receiver/Manager in either of two ways:

By Private Appointment
Under a General Security Agreement (GSA), secured creditors usually have the right to appoint a Receiver/Receiver-manager to secure the assets under the GSA when default has occurred. Once proper notice has been issued and the assets secured, they can be disposed of for the benefit of the secured creditor.

By Court Appointment
When appointed by The Court, the powers of the Receiver/Receiver-Manager are outlined under the appointment document. Court appointment is a more costly alternative to private appointment, but can grant greater powers to the Receiver such as the right to vest property.

Whether privately or court appointed, the Receiver has a duty to:

• Protect and preserve the assets.
• Take over management of the entity.
• Act in the best interest of the entity.
• Attend to PPSA and Bankruptcy and Insolvency Act required filings.