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Investments glossary

Receivership


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I believe that the great Creator has put ores and oil on this earth to give us a breathing spell. As we exhaust them, we must be prepared to fall back on our farms, which is God\'s true storehouse and can never be exhausted. We can learn to synthesize material for every human need from things that grow.

— George Washington Carver

A receivership is a court-appointed tool that can assist creditors to recover funds in default and can help troubled companies to avoid bankruptcy. In the first instance, having a receivership in place makes it easier for a lender to recover funds due to them when a borrower defaults on a loan. In the second case, a receivership may occur as a step in a company’s restructuring process, with the goal of returning the company to profitability. A receivership could also arise during a shareholder dispute to complete a project, liquidate assets, or sell a business, for example.

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