Preferred Capital Pushed into Receivership

“Receivership is the process of appointment by a court, a contract, or a government official of a receiver to take custody of the property, business, rents and profits of an insolvent person or entity, or a party whose property is in dispute. A receiver may be authorized to make a sale or disposition of the property in receivership. On appointment of a receiver in most jurisdictions, a bond conditioned on the receiver's faithful performance of the duties and obligations of the receivership must be furnished before the receiver is authorized to act.

“During a Chapter 11 bankruptcy liquidation, the management of the company retains control and directs the liquidating process. Once a liquidating plan is approved by the creditors and confirmed by the court, it is common for a liquidating trustee to be appointed in connection with the company's liquidating plan. This is referred to as a liquidation, rather than a receivership, which is often used in liquidations of a company under state laws.”

USlegalforms

copy of Preferred Capital Receivership

http://leasingnews.org/PDF/PC-Receiver_appointed.pdf

Previous stories on Preferred Capital, perhaps the first leasing company causality of the NorVergence leasing scandal.

http://www.leasingnews.org/Conscious-Top%20Stories/
Preferred_capital_OH.htm