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Receivership is typically triggered by default under a secured loan agreement. A creditor with a registered security interest (e.g. a General Security Deed) may appoint a receiver to enforce their rights and recover the secured debt.
The receiver may control:
Receivership can occur with or without liquidation and may overlap with voluntary administration in some cases.
When appointed, Equinox Restructuring & Insolvency will use the powers of the appointed receiver set out in the Corporations Act 2001. In the case of a Court appointment, the Court’s receivership order lays out the powers.
As the appointed receiver, our role is to act in the interests of the secured creditor who appointed us. Their duties often include:
Receivership may be used when:
The decision to appoint a receiver should follow professional advice, as it can impact employees, creditors, and the future of the business.
Although most business receiverships occur when a company has defaulted on a loan or other financial obligations, other reasons include:
Often, these terms are used interchangeably. In reality, receivership is narrower in scope than liquidation – but the two can coexist if broader insolvency issues persist.
| Aspect | Receivership | Liquidation |
|---|---|---|
| Who appoints | Secured creditor (privately or via court) | Directors (CVL) or creditors via court |
| Purpose | Recover secured debt | Wind up the company and distribute to creditors |
| Focus | Specific assets or business units | Entire business and creditor pool |
| Director powers | May continue if not displaced | Cease on appointment |
| Duration | As required to recover secured assets | Until finalised and deregistered |
Whether you are a secured creditor seeking to enforce a charge, or a director navigating a receivership, Equinox Restructuring & Insolvency can help.
We offer:
The receiver’s duty is primarily to the secured creditor. Other creditors may be affected if trading stops or liquidation follows.