A New York State or federal receivership is an alternative to Chapter 11 bankruptcy for a struggling business.
In receivership, a business is placed under the oversight of an independent third party when it is having difficulty meeting its financial obligations. This third party – the receiver – manages the assets of a business, conducts sales of the assets, and distributes the proceeds of the sales among the business’ creditors.
A dissolution is the closing of a business. This is often a preferable alternative to bankruptcy if your business is deeply in debt and you feel that that it can no longer continue operating. Dissolution can be quicker and less expensive than bankruptcy, and is a more private proceeding. In dissolution, the remaining assets of a business are distributed to your various creditors.
Receiverships and dissolutions are complex and detailed procedures. When considering them, it is always best to consult with a qualified attorney. We are highly experienced in representing financially distressed businesses of all kinds and would welcome a consultation with you regarding your particular situation.