When a company borrows money, it will often give the lender some security over the company’s assets to guarantee payment. This is generally by way of a charge, or debenture.
If the company fails to keep to the terms of the borrowing facility and if the debenture was signed before 15th September 2003 when the Enterprise Act came into effect, the lender may be entitled to appoint an administrative receiver. The administrative receiver is
primarily concerned with recovering the debt owed to the lender (secured creditor) and has control of the whole, or a substantial part, of the company’s property and wide powers over the business.
The Enterprise Act was introduced to ensure that all categories of creditors received a greater opportunity to recover their debts. For any debenture signed after 15th September 2003 please see the Administrations page.
Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone. Call your nearest office for a free consultation on a confidential basis.