Banks turning the receivership screw
Lenders are taking a tougher stance on their business clients as receiverships surge by 152%
Company receiverships have shot up by 152% compared to the same quarter in
2008, indicating banks are becoming tougher on their clients.
Carl Jackson, head of business recovery at Tenon, told the
Daily
Telegraph: ‘If it’s a hostile appointment it is more appropriate to use
receivership than administration. Banks are now taking a much more proactive
role in managing their underperforming loan book.’
Receiverships are entered into with the sole purpose of getting creditors’
money back by the sale of assets. This is as opposed to an administration, which
allows the company some protection from creditors while determining whether the
business can be sold as a going concern.