Receivership
Receiverships have drawn attention in these challenging economic times as one of the legal alternatives for creditors or victims of financial wrongdoing.
What is receivership?
Receivership is taking a business and having a court put it into the hands of a person (a “receiver”) to administer, conserve, rehabilitate, or liquidate the assets of the business for the benefit of creditors.
Receivers are judicially-appointed managers. They completely displace a company management sued by creditors. Once appointed, receivers make all business decisions—negotiating contracts, spending corporate funds, controlling hiring and firing, and other commercial actions.
It is important to note that while a legal solution to financial problems, receivership does not always entail the termination of the business. The business attorneys of McCleskey, Harriger, Brazill & Graf, L.L.P. in Lubbock, Texas are experienced in all aspects of the receivership process, as lawyers and as appointed receivers.
Why a receivership?
Receiverships provide more flexibility than allowed under the stricter guidelines used in various bankruptcies. They:
- Are governed by specific court orders specifying the receiver’s operational duties
- Specify the goals necessary to be achieved before the receivership is ended, either through reorganization or liquidation
Usually, a receiver is identified and recommended by plaintiffs—often creditors seeking all or part of what is owed them. Plaintiffs’ goals are to find someone who knows the company’s area of business and knows how to best restructure the assets.
While lawyers are sometimes receivers, they are usually advisors to non-lawyer receivers who need experienced receivership counsel. The business attorneys of MHBG are skilled in debtor and creditor law issues and regularly provide representation for receivers.
Our attorneys have experience serving as receivers for large commercial banks and regulatory bodies such as the United States Securities and Exchange Commission.
Attorneys
Serving clients from offices in Lubbock, Texas
For over 80 years McCleskey, Harriger, Brazill & Graf, L.L.P. has provided full service representation to businesses and individuals in Texas and New Mexico. Call us at 806-796-7300 or contact us online today about your receivership questions.
