Difference between Liquidation & Receivership

Adam and Michael from Waterstone Insolvency discuss the key differences between Liquidation and Receivership.
• How a company is placed into liquidation or receivership
• How a liquidator or a receiver is appointed, their powers, and the purpose of liquidation and receivership.
Liquidation usually occurs when a company becomes insolvent (unable to pay its debts as they fall due). The process involves appointing a Liquidator who will take the appropriate steps to make the company solvent again or bring the business to an end.
Receivership allows a secured creditor to recover the debt owing to it by appointing a suitable receiver. In the event, the directors cease control of the company, and the receiver will run the business, for the benefit of the creditor that appointed the receiver.
If you are a secured lender, having trouble with default or a shareholder having financial difficulties post-COVID, get in touch with us, so we can help look at your current options and advise you on the appropriate way forward for your business.
Please contact us at [e-mail] or 0800 CLOSED.
Alternatively, book a free 30 - min consultation with our expert Insolvency team from the link below.
waterstone.co.nz/book-an-appo...

[@SirLuLzDalot]

Great summary