Receivership is a process where a secured creditor appoints an independent receiver to take control of specific company assets (or, in some cases, the entire business) to recover an outstanding loan. It is generally a private enforcement remedy available under a security agreement, often without the need for court involvement.

Depending on the terms of the security agreement and the nature of the security, the appointment may take the form of a:

• Receiver only,

• Receiver and Manager,

• Controller (typically under section 420 of the Corporations Act), or

• Mortgagee in Possession (typically for real property under mortgage).

While the titles may vary, the underlying objective remains the same: to protect and realise secured assets in the most effective manner possible. The choice of appointment structure will be determined by the rights granted in the security instrument and the complexity of the asset pool.

A receiver’s role is to:

• Take control of and realise secured assets,

• Apply proceeds to repay the appointing creditor,

• Report on outcomes and progress,

• In some cases, continue operating the business during the recovery process.

Receivership can operate alongside other appointments such as Liquidation or Voluntary Administration and is commonly used in property-backed or asset-heavy businesses.

Helios Advisory has experience acting as court- and creditor-appointed receivers across a wide range of industries and asset classes, including trading businesses, development sites, and equipment finance portfolios.