Given our firm’s boutique nature, the team at Helm Advisory is able to assist you no matter how big or small your financial trouble. Whether your company is set to enter Receivership or you require a Section 66G to resolve a dispute among co-owners, here’s what you need to know and how we can help you.
Receivership is triggered when a company defaults on secured debts or is unable to meet its ongoing expenses.
A company enters into Receivership when a secured creditor appoints an insolvency practitioner to act as a receiver over the company. The receiver is a registered liquidator who may continue to trade the business with a view of selling the company as a going concern.
A secured creditor in a Receivership can recover a debt without winding up a company by having the receiver sell the property the creditor has a security interest in. Here are four other benefits of a Receivership:
1. The appointment does not necessarily involve a Court order.
2. The Receiver does not need to deal with creditors unless trading on the business.
3. The company may be able to continue to trade after the payment of the outstanding debt.
4. The appointment of the receiver typically ends upon the recovery of the secured debt.
Business partnerships can dissolve, which is why Section 66G of the Conveyancing Act 1919 offers a solution when agreement on asset division proves impossible. Section 66G will only apply to real property consisting of land or buildings and generally involves the appointment of real estate agents, valuers and lawyers. It allows for a trustee to be appointed to resolve co-ownership disputes by application to the Supreme Court of NSW and forces the sale of the property where one or more owners are uncooperative.
There are several benefits to a Section 66G appointment, including: