How often do banks appoint receivers?

You have probably heard that Banks don't like to appoint Receivers.  The Bank may have even told you that.  Well it's true.  Banks don't like to appoint Receivers, but they will do it and they do it often. 

In 2008 Banks appointed Receivers twice as often as they did in each of the previous five years.   Banks appointed Receivers, or took possession of company assets, 957 times in 2008.

We still meet Directors who think they'll be able to restructure their company after the appointment of a Receiver.  That will not happen.  A Receiver will sell assets for the best price offered and the money will go to pay the company's debt to the Bank.  A Receiver does not try and restructure the company - he just sells assets.  If the sale of assets doesn't fully pay off the debt to the Bank, and if you have given a personal guarantee to the Bank, then you will be liable for the shortfall to the Bank. 

If the Bank is threatening to appoint a receiver you should CALL US NOW for CONFIDENTIAL FREE ADVICE on your options.

If you like to learn more about receivership click here.