A Fixed Charge Receiver is appointed by the holder of a fixed charge to deal with only the specific assets that they hold a charge over. This is not an Insolvency process and thus is regulated by the Law of Property Act 1925. As a result, the appointee need not necessarily be a qualified Insolvency Practitioner.
A Fixed Charge Receivers’ power is restricted purely to collecting in income over the charged property, and they are remunerated on the basis of 5% of realisations.
Key facts:
- Powers are set out in the security documentation.
- There are no powers to enforce co-operation from 3rd parties.
- There are no reporting duties so far as unsecured creditors are concerned.
- There is no obligation to deal with employee claims (unless they are subsequently employed by the Receiver).
How we can help:
- We will arrange a free initial consultation with the instructing party.
- Evaluate the Company’s financial position, provide details of all options available and make bespoke recommendations.
- Explain the process in detail and the various options surrounding the appointment.
- Answer any questions and concerns.
- Assist in the preparation of all appointment documents.
- Recommend and liaise with legal advisers and agents where necessary.