answersLogoWhite

Top Answer
User Avatar
Wiki User
Answered 2007-09-09 09:54:08

A court takes control, assigns a management team, and runs the company until it is out of debt or is liquidated.

It is complex so please go onto this website which explains it more fully (even though the UK) the rules are extremely similar in the U.S. and Canada: http://www.companyrescue.co.uk/company-rescue/options/receivership.html

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Loading...

Still Have Questions?

Related Questions

What happens to the employees when the company goes into receivership?

What happens to employees when the company goes into receivership depends on the trustee and terms of the deal. Employees can be kept with the company until a new owner is established. If the terms require employees to be laid off, any unpaid salary or wages will rank ahead of unsecured creditors and be paid when funds are available.


Can you sue a company in receivership?

Sure.


What has the author Paul Lange written?

Paul Lange has written: 'The law and practice of administrative receivership and associated remedies' -- subject(s): Bankruptcy, Receivership 'Company receivership' -- subject(s): Bankruptcy, Receivership


Can you force a company in receivership into bankruptcy?

Recievership is bankruptcy.


Where is the British Cotton and Wool Dyers company?

Went into receivership in 1983


What company owns the washingtonmutual website?

Washington Mutual is owned by JPMorgan after they purchased their assets back in 2008 when they where placed into receivership of the FDIC, they subsequently filed for Chapter 11 receivership


What happens to the government if a company goes bankrupt?

Nothing.


What happens to your 401-K Plan or retirement plan if your company goes into Receivership?

I believe, in general, you can no longer make contributions, but you can roll over the money into an IRA or to your next employer's 401k. Unless there are some vesting provisions tied to your length of employment, the money you've contributed is yours.


What happens when a company goes public?

more government regulations


What is receivership?

receiver is someone appointed to whom is vested the legal right to receive property belonging to a company


What happens to a publicly traded company when its stock goes to zero?

you can claim a CAPITAL GAIN LOSS ON YOUR TAX RETURN FOR THE YEAR IF THE COMPANY GOES BANKRUPT that's it.


What best explains what happens when a company or government issues bonds?

The company or government goes into debt to those who purchase the bonds.


What best explains what happens when company or government issues bonds?

the company or government goes into debt to those who purchase the bonds


Why stocks exchange increase or decrease daily?

Because when people buy stock, that means they are paying a company a sum to have the right to own a part of that company. When this happens the value of the company goes up. However if people do not like a company they will sell the stock they own and get money back for it. When this happens the company now holds less money and its stock goes down. This happens with thousands of listings everyday on the stock exchanges.


How do you obtain payment from a company in receivership?

You file a "prof of claim" with the court and wait in line. Frequently you only get pennies on the dollar owed.


What happens when a company issues bonds?

The company or government goes into debt to those who purchase the bonds. You're f***ing welcome.


When a company goes private what happens to the stockholders?

The public company that is going private will have to buy out smaller shareholders at a premium over the closing price at the time that the company goes Private. StockHolders with larger stakes will sometimes be allowed to keep their stake in the company.


Does a stock go down when a company makes an acquisition?

Typically the company doing the acquiring goes down while the company being acquired goes up in an acquisition. This is not always the case but historically a large majority of the time this is what happens.


Is welcome finance in receivership?

Yes


Is Manchester United under receivership?

No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.No it is not.


What happens when you sublease a car and the company that you leased from goes into liquidation?

You will have to make the payments to the company that purchases their assets, it doesn't mean you get a free car.


What is equity receivership?

"equity receivership" may be taken to include allproceedings in which a receiver is appointed by an equity court for any purpose.


What does Washington mutual do?

Washington Mutual was a savings bank holding company in the United States. Unfortunately, in September 2008 Washington Mutual was placed into receivership.


Will you get money if company goes into receivership?

As a stockholder -- it is uncommon to receive anything. (Sorckholder are equity...not a creditor...the Co owes them nothing. Creditors may receive from nothing or some small portion to all of the amount owed - depending on what status their claim, secured interest and other factors.


Can a business be forced into receivership?

Yes. Receivership is just a fancy name for "bankruptcy where someone is appointed to collect money owed to the debtor to pay it to creditors."