Banks want their money back so Receivership could happen soon....

Banks want their money back so Receivership could happen soon. ??



https://svpartners.com.au/the-difference-between-receivership-vs-administration/

What is Receivership?

Receivership is a formal process that allows a secured creditor (usually a bank) to recover a debt it is owed without placing the debtor into Liquidation.

If a business becomes unable to make repayments on a secured debt, the creditor that holds the security may appoint an independent Receiver. The Receiver is responsible for controlling and managing the company in the best interests of the appointing creditor.

The Receiver will investigate the company’s financial position and develop a plan to recover some (or all) of the outstanding debt. This may involve selling company assets (including assets that are not subject to a security interest) and/or selling the company as a going concern.

Receivership may allow a business to repay its debt to a secured creditor and continue trading, potentially avoiding Liquidation.

Continuing to trade the business typically provides better returns for secured creditors. It also improves outcomes for unsecured creditors, employees, shareholders and other stakeholders.