Speak to our experts
Creditor portal

Receivership

Navigating complexities with solutions.

Protect your interests

Working in your interest to gain back the control.

Recover what’s owed

We realise the company’s assets to recover debts owed to you.

Primary focus

Our focus is on obtaining the funds owed back to you.

How Receivership Helps Recover Debt

Receivership is a legal process where a secured creditor appoints a receiver to recover outstanding pre-appointment debts owed by an insolvent company.

The receiver takes control of company property and may sell the company’s business or assets covered under a security agreement, including both circulating and non-circulating assets, to repay what the company owes.

Read our Receivership Guide

Recover with Resolution

Business doesn’t always go to plan, but what matters is how you respond. Receivership offers clarity and confidence when it’s time to recover what you’re owed.

Taking proactive measures can help protect your interests and give the company the best chance to repay its debts. Speak with our experts today for a no-obligation discussion on your options.

Book a Free Consultation

Our Receivership Services

Lenders

Financial institutions or individuals who have loaned money to a company can recover money owed through the process of receivership.

Suppliers

Unpaid invoices? Poor financial management can leave suppliers out of pocket. Don’t wait for debt to spiral, take action early.

Consumers

Paid for goods or services you never received? You may be entitled to recover your losses. Speak with our team today.

Employees

Owed wages, superannuation or other entitlements? Receivership can be a path to recovering what you're due.

Our Receivership Process

1

Receiver Appointed

A receiver is appointed to act on behalf of a secured creditor to recover debts. They may be:

  • Privately appointed, under the terms of a security agreement, or
  • Court-appointed receiver, usually in complex or disputed cases.

In some situations, the receiver may also be appointed to manage the company’s affairs, in which case they are known as a receiver and manager.

2

Collect, Sell & Distribute

The receiver will assess the company affairs to accurately determine their assets and outstanding debts.

After selling the assets, the receiver collects and allocates the proceeds. Any money from the sale of a non-circulating security interests must first be paid to the secured creditor.

Money from the sale of circulating assets (liquid assets such as stock) must then be paid in the following order:

  • Receiver's fees
  • Priority claims including employee entitlements
  • Secured creditor's debt

Any excess funds are then transferred to the company or an external administrator is appointed.

3

Complete Other Commitments

There are several other factors that a receiver must also consider:

  • Pre-existing contracts: Contracts remain enforceable unless varied. Legal advice may be required.
  • Receiver’s fees: Fees are paid from secured asset sales and outlined in the appointment documents, with review options available.
  • Unsecured creditors: Despite the appointment of a receiver, unsecured creditors may request legal action and apply for a court-ordered liquidation to recover money for unpaid debt.
4

Report & Resignation

Receivers must pay their receivership liabilities and submit a full report to ASIC detailing receipts, payments, and any offences. The appointment ends when the receiver resigns or is discharged by the secured creditor. Full control of the company and any remaining assets will then be handed to an external administrator (if appointed) or returned to the directors.

Act Now

Don’t wait for debt to escalate. Contact Mackay Goodwin’s experienced Receivership team today for a free, no-obligation consultation.

We’ll guide you through the process, protect your interests, and help recover what you're owed.

Book a Free Consultation

Meet our Receivership Specialists

Andrew Quinn

Andrew Quinn

Director & ASIC Registered LiquidatorBrisbane

Andrew Quinn is a seasoned professional in the insolvency and restructuring industry, serving as a Director at Mackay Goodwin. With a deep understanding of complex financial challenges, Andrew has guided numerous businesses through voluntary administrations, liquidations, and corporate restructurings. His industry experience spans across sectors including construction, hospitality, and professional services, providing him with a diverse skill set to address each client’s unique needs.

Andrew’s strategic approach focuses on achieving the best possible outcomes for all stakeholders while navigating businesses through periods of financial adversity. His commitment to providing tailored solutions ensures that businesses receive the support they need to recover and thrive in challenging times.

Read More

FAQs

The role of a receiver revolves around three key responsibilities:

  • Protect, collect, and sell company assets to pay debts
  • Distribute proceeds according to legal priority
  • Report to ASIC on receipts, payments, and any potential offences

While appointed by a creditor, the Receiver must exercise reasonable care to sell assets at market value.

The Receiver is personally liable for debts incurred during the course of the receivership but only to the extent that liability arises from their actions while controlling the company assets. They are also responsible for rent or other amounts due if they continue to occupy or hold property owned by another party that was in the company’s possession.

The duration of a receivership varies depending on the complexity of the company’s business, the nature of the business operations, and the assets involved. It can last from a few months to several years, depending on how quickly the receiver can recover and distribute funds from the company property.

A secured creditor is an entity that holds a secured interest in some or all company’s assets. This is usually in the form of a mortgage. Companies regularly obtain finance in the form of a loan and in the process, provide assets as a form of ‘security’. In this case, the financial institution that provided the loan is a secured creditor.

There are several key differences between the three and they are made clear in the roles carried out by each party.

  • A receiver is appointed by a secured creditor. Their role is to collect and sell assets to repay debts owed to the secured creditor.
  • An administrator examines the company and reports to its creditors. The report outlines information on assets, management of affairs, processes, and current financial circumstances. Recommendations are also provided.
  • In comparison, a liquidator has a responsibility to all company creditors. Their task is to protect, collect, and sell all company assets. The proceeds are then distributed to creditors with an inquiry into the failure of the company also conducted.

Read more about the difference between receivership, administration, and liquidation.

Company directors usually don’t choose receivership, it's initiated by a secured creditor to recover debts. However, early action can give directors alternative options, such as:

If your company is insolvent or under financial stress, acting early could help maintain control of business operations and avoid the need for a receiver.

Contact us today for a free consultation and expert advice.

A sequestration order is a court order that makes an individual officially bankrupt. It usually follows a bankruptcy notice issued by a creditor when a debt remains unpaid. Once made, the official receiver or trustee will take control of your financial affairs to ensure a fair distribution of assets to creditors.