Administrative Receiverships

Administrative receivership: duty before rescue

An Administrative Receiver (AR) is appointed by or on behalf of the holder(s) of a floating charge over the whole or substantially the whole of a company’s assets. The charge must have been created prior to 27 March 2006 in respect of companies registered in Northern Ireland. The AR may continue to operate the business with a view to achieving a going concern disposal.  The AR owes a primary duty of care to the debenture holder and the preferential creditors.