Printable View
I would very much appreciate your help / advice on the following problem:
I need to use an English term meaning that a company has filed insolvency, but temporarily continues its business under management of a court-appointed administrator. The only expression that comes to my mind at the moment is 'Company XYZ (insolvency pending)', but I realise that may not be the formal term I'm looking for.
Any help appreciated.
Tee Kay
Here in the UK, this would be classified as 'in receivership'.
Receivership
Under Part III of the Insolvency Act 1986, a receiver is appointed by a lender with a charge or mortgage over the company's assets (usually the bank) who, in consequence, of failure to receive payment, wishes the receiver to sell the assets (of the company in receivership) to produce funds to repay the debt.
eg. Rover cars recently!
When a company is bankrupt, rather than closing it immediately and dismissing the workforce, the 'receivers' are brought in to manage the company, find a potential buyer or sell of the assets to recover as much as possible.
Many thanks Hobbes. I should consider myself lucky that someone like you happened to lurk in here and was kind enough to spend some time replying to my enquiry.
The legal passage you quoted describes the very situation I was talking about, therefore 'in receivership' sounds perfectly suitable for the context.
Thanks again and all the best,
Tee Kay
US - Chapter11 - regrouping, creditors will be partially reimbursed by Trustee
Chapter 7 - bancruptcy