Article
Bankruptcy Court Holds That Receivership Order Divests Debtor’s Manager Of Authority To File Chapter 11 Petition
A secured lender's appointment of a receiver over collateral may trigger a borrower's Chapter 11 bankruptcy filing, potentially causing significant delay and expense. Recent bankruptcy court decisions reveal how specific language in receivership orders can mitigate this risk by divesting debtor management of authority to act on the borrower's behalf.
Duane Morris LLP