Receivership
The term Receivership usually refers to Administrative Receivership although there are other types of receivership.

An Administrative Receiver is appointed by a creditor (usually a Bank) which has security (in the form of a floating charge) over most of a company's assets. Typically the creditor has failed to adhere to the terms of the repayment agreement with the creditor and the creditor has issued a formal demand for payment which has not been met.

The Receiver's powers can be found in the security documentation but normally include the power to trade and sell the business, as well as additional statutory powers.

The Administrative Receiver's duty, inter alia, is to realise the assets subject to the appointor's security, which usually includes the majority of the Company's assets and he owes no duty to the company's other creditors.

The Receiver's job is complete once he has realised all of the assets subject to the appointor's charge or sufficient assets in order to repay the appointor in full.