In general most receiverships accrue from business disputes or real estate foreclosures. A receiver can even be appointed to oversee assets during divorce or criminal proceedings where a business and/or real estate property is involved.
Choosing a court-appointed receiver is one of the most important decisions one can make for distressed commercial assets. This is primarily because the choice will greatly impact the asset’s financial future.
The primary objective of the receiver is to secure the physical asset, accounts and records to protect the integrity of the asset and income stream. These services will include but are not limited to the following:
- Third party independent control as a fiduciary of the court.
- Possession and preservation of the asset.
- Supervision and direction of daily and on-going activities of the property.
- Full review of all contractual services.
- Bidding and awarding of service contracts and independent outside services.
- Full accounting of all income and expenses.
- Authorization, control and payment of payables, with restructure of payable stream if necessary.
- Understanding of institutional requirements, policies and goals.
- Specific recommendations for extraordinary maintenance requirements.
- Proactive management to establish the confidence of tenants and others.
- Reports tailored to the needs of the court and secured creditors.
- Full cooperation after the receivership period to continue stabilization of any tenant base and property operations.
Upon appointment and posting of a bond, the receiver will inspect the property, advise and meet tenants and vendors, obtain and review records from the owner as well as establish the operational, maintenance and accounting procedures and systems. A conditional report is prepared and is submitted to the court within 30 days.
Our monthly financial, operating and administrative reports are presented to the court monthly. All parties subject to the receivership can review these reports online by having a login name and password to our JBLink system.
Should you need more information regarding receiverships and other services the JBL Special Assets Department can provide please call 651-686-0212 or use our convenient contact form (click here).