Despite the advantages of having security over a company's assets, there are issues which a secured creditor should take note of, from the point of negotiating the terms of the security instrument through to the point of enforcement. Receiverships are a key method of enforcement and enable secured creditors to realise the secured property and recover the secured debt. This article provides a practical consideration of those matters from an enforcement perspective and discusses the points that a secured lender should be aware of in order to maximise its chances of recovering its debt in full.
This article first appeared in Volume 16, Issue 1 of International Corporate Rescue and is reprinted with the permission of Chase Cambria Publishing - www.chasecambria.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.