DelCotto Law Group is equipped to handle receivership cases for any constituent -creditor, debtor, or receiver. A receiver is appointed by a state or federal court, and their powers can be defined by both contracts and the law. A receiver takes over control of property and operates it for the benefit of affected parties, normally a lender. Many commercial loan documents include consent to the appointment of a receiver if the loan is in default, and lenders secured by commercial real estate may request appointment of a receiver in conjunction with a foreclosure action. However, receivers are not limited to commercial real estate operations, and can be appointed to operate almost any type of business if the situation requires it. The receiver’s responsibility is to maximize recovery and assess viable options for continued operations or sale. Since “control” is key, the appointment and terms of a receivership are often hotly contested. Bankruptcy is often filed on the eve of a possible receiver appointment to maintain an owner’s control of their business.
DelCotto Law Group represents companies that are facing or have been placed in receivership and will help assess whether receivership is the best course of action. On occasion, a receiver can actually benefit both the lender and borrower by stabilizing operations and adding value. If the receivership is involuntary, DelCotto Law Group can oppose appointment or negotiate the terms of the receivership. Issues such as access to books and records, the ability to show a property to potential purchasers and the nature and frequency of reports from a receiver are examples of areas where we look out for the interests of our clients. Business owners rarely want to hand over control, and DelCotto Law Group fights to protect a client’s right to possession of its business operations.
The key to DelCotto Law Group’s effective assistance of creditor clients is understanding the nature of a business in distress, and then tailoring the scope of a receiver’s duties to maximize the value of the business without creating a risk of liability. DelCotto Law Group is adept at seeking to place a company into receivership. We seek to ensure the business is placed under watch of an experienced receiver with the appropriate skills and authority to enhance a business’s value by protecting and maximizing its assets.
DelCotto Law Group understands the complexities of receiverships. With their collective experience and focus in the insolvency field, DelCotto Law Group generates options and innovative solutions for all of their clients.