An Administrative Receivership is when a company reneges on the terms of its borrowing from a creditor who has a floating charge. That creditor can then appoint Dains as an Administrative Receiver to recover the money which is due. Upon appointment, Dains has extensive powers to deal with the charged assets.
Within 28 days of appointment Dains will notify creditors of its appointment and hold a meeting of unsecured creditors within a period of three months. At the meeting a report is given on the events leading to the appointment, the carrying on of the business, disposal of assets, the amounts owing to creditors and how much, if anything, is likely to be available for distribution. A copy of the report is also sent to all known creditors.
It’s important to remember that the appointment of Dains as an Administrative Receiver does not prevent creditors from either continuing with or commencing any legal action against the company. This includes the petitioning for its liquidation. The Receivership is complete once the floating charge holder has been paid in full or when all of the assets have been sold and the proceeds distributed.
Dains Business Recovery Limited - Registered Company number 10115314. Registered office First Floor, Gibraltar House, Crown Square, First Avenue, Burton on Trent, DE14 2WE. Registered in England and Wales.
Martin FP Smith and Nicola J Meadows are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. Furthermore, they are both bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment. When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.