Definition of Receivership:
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.
The state of being dealt with by an official receiver.
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.
State of being under the administration and control of a receiver. Receivership removes the property or business from the control of its owners (stock/shareholders), and the firms directors lose their powers to the receiver who stops dividend and interest payments. A firm in receivership must carry the notice of In Receivership on all its stationery and official documents.
Synonyms of Receivership
Poverty, Penury, Destitution, Ruin, Ruination, Indigence, Impecuniousness, Impoverishment, Need, Neediness, Privation, Want, Hardship, Distress, Difficulties, Dire straits, Reduced circumstances, Straitened circumstances, Mendicancy, Vagrancy
How to use Receivership in a sentence?
- The company went into receivership last week.
- A receivership is a tool that can assist creditors to recover funds in default and can help troubled companies to avoid bankruptcy.
- The goal of a receivership is to return companies to profitability.
- For the duration of a receivership, the company's principals remain in place but have little authority.
- In a receivership, the court appoints an independent "receiver," or trustee, who effectively manages all aspects of a troubled company's business.
Meaning of Receivership & Receivership Definition