The following Restructuring & Insolvency guidance note Produced in partnership with Carolyn Jones, consultant provides comprehensive and up to date legal information covering:
This Practice Note considers the interaction between the statutory moratorium under Schedule B1 to the Insolvency Act 1986 (IA 1986), which prevents most creditor or third-party actions against an insolvent company in administration, and the right of a secured creditor to enforce its security over the company’s secured asset by appointing a fixed charge receiver. For an explanation of the moratorium which arises in administration, please see Practice Note: The moratorium in administration.
This note does not consider additional enforcement options that may be available to the secured creditor.
The holder of a fixed charge may, subject to the terms of the charge, appoint a receiver as a way of enforcing that security. Once appointed, the receiver takes charge of the secured asset to realise it and apply the realisations towards the repayment of the sums secured under the charge.
This note does not consider the general mechanics of appointment of a receiver under a fixed charge or other security, nor the general powers and duties of a receiver once he is appointed. For further information on the appointment and duties of a receiver, please see Practice Notes: Procedure relating to appointment of LPA or fixed charge receiver(s) and Roles, powers, functions and duties of an LPA or fixed charge receiver. In practice secured lenders will often appoint
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