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A court takes control, assigns a management team, and runs the company until it is out of debt or is liquidated.
It is complex so please go onto this website which explains it more fully (even though the UK) the rules are extremely similar in the U.S. and Canada: http://www.companyrescue.co.uk/company-rescue/options/receivership.html
Wiki User
∙ 16y ago
Wiki User
∙ 16y agoWell, it depends on many, many things. (I've been through it many, many times!)
Generally, any back pay, at least up to some fairly high limit, is paid fairly quickly....and any pay after filing is normally fairly secure.
The first question is if it is a Chapter 11 (re-organization) or a Chapter 7 - dissolution, as well as what you do for them and if the area your in has value to others.
That is to say...if the company is either reorganizing or dissolving...and your part of the company is either a desireable thing to it's future 9under re-org) or to others, undeer dissolution...your job may well survive...yes, under knew management...probably lots of functions scalled back...but somebody would want to buy (or keep) that operation going...and will pay the creditors to get it.
If your part of a purely losing thing, that even if bought would likely just become part of someones elses operation (say accounting in a division), your really at risk....a new operator/owner may want the business, but not really you.
Time for some self evaluation...but no question about it...working for a company in BK, where austerity budgets and cutt backs are the norm...is not a good thing.
Wiki User
∙ 15y agoAs a stockholder -- it is uncommon to receive anything. (Sorckholder are equity...not a creditor...the Co owes them nothing. Creditors may receive from nothing or some small portion to all of the amount owed - depending on what status their claim, secured interest and other factors.
Wiki User
∙ 9y agoWhat happens to employees when the company goes into receivership depends on the trustee and terms of the deal. Employees can be kept with the company until a new owner is established. If the terms require employees to be laid off, any unpaid salary or wages will rank ahead of unsecured creditors and be paid when funds are available.
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Can you force a company in receivership into bankruptcy?
Recievership is bankruptcy.
What happens to your 401-K Plan or retirement plan if your company goes into Receivership?
I believe, in general, you can no longer make contributions, but you can roll over the money into an IRA or to your next employer's 401k. Unless there are some vesting provisions tied to your length of employment, the money you've contributed is yours.
Where is the British Cotton and Wool Dyers company?
Went into receivership in 1983
Can a business be forced into receivership?
Yes. Receivership is just a fancy name for "bankruptcy where someone is appointed to collect money owed to the debtor to pay it to creditors."
What company owns the washingtonmutual website?
Washington Mutual is owned by JPMorgan after they purchased their assets back in 2008 when they where placed into receivership of the FDIC, they subsequently filed for Chapter 11 receivership
If your company is owed money from a company that goes into Chapter 11 what do you need to do?
If a company goes into a Chapter 11 owing your company money, you need to submit a claim to the bankruptcy court yesterday.
What has the author Paul Lang written?
Paul Lange has written: 'The law and practice of administrative receivership and associated remedies' -- subject(s): Bankruptcy, Receivership 'Company receivership' -- subject(s): Bankruptcy, Receivership
What is receivership?
receiver is someone appointed to whom is vested the legal right to receive property belonging to a company
When a company goes public what does it do?
receives money from the govenment
How do you obtain payment from a company in receivership?
You file a "prof of claim" with the court and wait in line. Frequently you only get pennies on the dollar owed.
What is An advantage for a company that goes public?
Money is raised without going into debt.
Is welcome in receivership?
Yes
