Receivership
DelCotto Law Group can handle the most sophisticated receivership cases for any constituency, whether they be comprised of creditors, debtors, or receivers. Receivership is an equitable remedy in which a court orders property to be placed under the control of a receiver for the benefit of affected parties. A failing company may be placed in receivership in an action brought by its creditors. Often, the business is continued but remains subject to the receiver's control. When that occurs, the receiver’s responsibility is to maximize recovery and assess viable options for continued operations or sale. Receivership is governed by and arises under a court order and is used only in exceptional circumstances, with or without the consent of the property owner. Since “control” is key, the remedy of receivership is often a hotly contested matter, and bankruptcy is often filed on the eve of a possible receiver appointment.
DelCotto Law Group represents companies that go into or are placed in receivership and can determine if receivership is the best course of action. If the receivership is involuntary, the attorneys at DelCotto Law Group can negotiate with the lender to modify the terms of the receivership. The terms of the court order are critical as they provide the governing rules of the receivership. Being in receivership is not an enviable situation for any company, but DelCotto Law Group can streamline and refine this process in order to protect a client’s right to possession of its business operations.
The key to allow the Firm to assist its creditor-clients is to identify and understand both the nature of the business at issue and the scope of a receiver’s duties in order to maximize value of the company. When representing lenders, the Firm can assist with the process of placing a company in receivership in order to gain control of the entity’s operations. The Firm can work to ensure that the company is placed under watch of an experienced receiver who possesses the appropriate authority to enhance the company’s value by protecting its assets.
DelCotto Law Group understands the complexities of receivership for debtors, creditors, and receivers. With experience and their concentrated focus in the insolvency field, the lawyers of DelCotto Law Group bring options and innovative solutions to the table for all of their clients.
