LPA/Fixed Charge Receivership
Holders of mortgages or charges are able to appoint an LPA Receiver/Fixed Charge Receiver.
This is often over property or land but can be over assets such as plant & machinery, other assets such a ships or aircraft, books debts etc. The purpose is to take control and possibly sell the mortgaged property/asset. LPA Receivership is generally simpler and subject to fewer formal reporting requirements than formal insolvency procedures.
As the receivership is over a specific asset(s), it can operate alongside the mortgagee’s normal business dealings. LPA Receiverships are often used as a tool by mortgagors to collect rental income and/or negotiate with the mortgagee regarding repayment.
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