Receiverships

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Receiverships can either be a privately appointed receivership using the creditor’s/lender’s debt instrument (usually a general security agreement or GSA) or a Court-Appointed Receivership.  The decision to appoint a receiver is usually due to the lender’s concerns on regarding the its loans to the business or the status of its security.

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Our Licensed Insolvency Trustees have acted as Receivers and Receiver-Managers through private appointments and Court appointments (under s. 243 of the BIA, or under another legislative provision). Only a person holding a licence to act as trustee may be appointed as Receiver or Receiver-Manager.

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Before a Receivership appointment can take place, the lender must have sent prior notice to the debtor the statutory 10-day Notice of Intention to Enforce Security under the provisions of the Bankruptcy and Insolvency Act (“BIA”).  This 10-day notice period is a requirement unless the insolvent person/company consents to earlier enforcement after the notice has been given. This time period allows for the debtor company to either remedy its defaults/indebtedness to the lender or consider filing a Notice of Intention to Make a Proposal to Creditors (“NOI”).  The filing of a NOI would stay the secured creditor from enforcing its security for a 30-day period.

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Should your company receive such a Notice of Intention to Enforce Security from your creditor(s), call our Licensed Insolvency Trustee at (604) 558-8020 to discuss your options.