When looking at a receivership from the perspective of Representing the Defendant there are several factors to take into account. Here we take a look at some of those factors that come in to play.
Essentially, there are two types of borrowers/defendants in a receivership case, those that have defenses and those that do not. Those that have defenses can be a long topic to cover as these arise in partnership disputes or other cases where perspective comes into play. For this session we’re focusing on those that do not have a defense. Typically, this means bank or lender originated receiverships. These have loan documents in place and the loans are in default, they’ve probably gone through one or more forbearance agreements. In most cases, these forbearance agreements have essentially accepted the appointment of a receivership as an action.
So what is the role of counsel when there is little leverage? There are a couple key pieces to look at here:
Finally, make sure you’ve covered yourself, meaning it’s clear how you will be paid. Remember, once you’re in you may be required to file schedules, appear in court, attend depositions, these all require effort and time. You should not be figuring out after the fact how you’ll be compensated.
Robert E. Eggmann is Principal at Carmody MacDonald and concentrates his practice in the areas of Chapter 7 & 11 bankruptcy, business reorganization, receiverships, business and individual loan workouts, debtor/creditor rights, and appellate bankruptcy advocacy. For more than 30 years, he has advocated for both debtors and creditors in complex bankruptcy and commercial litigation in…
State Court Receivership 101: Closing Out a Receivership
State Court Receivership 101: How to Get a Receiver Appointed
State Court Receivership 101: Types of Receivership
State Court Receivership 101: What is a Receivership
State Court Receivership 101: Representing a Receiver
State Court Receivership 101: Costs in a Receivership
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