How can I tell if my business needs to appoint LPA receivers?
Property is an asset that can be particularly complex to assess once a struggling business heads towards administration.
The role of a Law of Property Act Receiver is to act on behalf of lenders where a property is involved. It is not always clear whether their presence is needed though, and a pre-receivership report is the best way to bring clarity in this regard.
A pre-receivership report will analyse the structure of the outstanding debt and potentially provide an amicable solution if the existing relationship between lender and customer has deteriorated to a significant extent.
Where does an LPA Receiver come into the equation?
The role of an lpa receiver is to recover any outstanding debt which is owed to a lender. The best way to do this generally involves seeking to secure an early sale in order to repay as much of the outstanding loan as possible.
Upon their appointment into the position, an LPA receiver will essentially take on the role of an owner and use their own discretion on how best to resolve the situation as quickly as possible. Within this role they will be expected to deal directly with occupants, insurance situations, potential repairs and anything else which could have an impact on the successful settling of the debt.
The debt could potentially be paid through the gradual collection of rent, but in many cases an outright sale of the property is preferable as this will resolve things as quickly as possible.
Businesses that are struggling in the current financial climate can benefit from seeking advice sooner rather than later.
Corporate Insolvency specialists can be pivotal to determining the best route to take as they are able to provide intelligent advice that is tailored to your specific sector, as well as strong leadership qualities.