0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

RBR Video - Administrative Receivership and LPA

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cash flow problems and raising finance.

The processes and intricacies involved in Administrative Receivership and LPA oversight can be difficult for company directors to fully understand and get to grips with. Click the video below for a detailed overview.  

 

Video Transcription

Administrative receivership is a process initiated by a secured creditor who has lost faith in a company's ability to repay the sums owed. Administrative receivers are appointed with a view to selling assets of the company in order to repay the sums owed to the secured creditor.

There are some similarities between administrative receivership and administration –however, administrations are more common now as a secured creditor is generally only able to appoint an administrative receiver in circumstances where they are holding security – most commonly a debenture – that was granted before the 15th September 2003.

Whether or not you'll be able to keep avoid company from entering administrative receivership will depend on how far along in the process you are, and how soon you take action after becoming aware that the secured creditor is contemplating making such an appointment. If the company has already breached the terms of its banking or loan facilities, it is highly advised to contact us as soon as possible to discuss the options which may be available.

A receiver appointed specifically under a fixed charge generally has more limited powers as they can only deal with the fixed charge property and not the business generally. A fixed charge receiver may also be referred to as an LPA receiver where a receiver is appointed under the Law of Property Act 1925 to take back control of the property where the borrower has defaulted on the terms of its loan.

LPA receivership is not a formal insolvency procedure and so should not be confused with administrative receivership. While LPA receivers are commonly appointed where the borrower has failed to repay a loan, it can also occur where there have been other breaches of the loan, for example, a breach of the loan-to-value covenant. The fixed charge receiver is usually given extensive powers to run the business at the property and to divert the business income to the lender. 

For more information on administrative receivership and LPA receivership and the options that are available to you and your company, you can arrange a free consultation at one of our regional offices and seek confidential advice from an insolvency practitioner.

FREE Company Director Guide Get your FREE copy

FREE Company Director Guide
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
75
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners