Receiver

What does it mean?
A person appointed by a bankruptcy court or secured creditor to run a company for a short period of time in a manner that will ensure as much debt is paid back to creditors as possible.

In Other Words...
The main purpose of a receiver is to use a company's assets in a way that will most effectively pay back creditors. Depending on where a receiver is appointed, there are numerous restrictions on how he or she runs a business. For instance, in many jurisdictions a receiver can run a company only for 14 days. In turn, a receiver's main function is often simply to liquidate all available assets. When a receiver is appointed, the company is said to be "in receivership."

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Related Terms
Bankruptcy | Bankruptcy Risk | Chapter 11 | Creditor | Debt | Discharge in Bankruptcy | Receivership | Senior Security

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