Calypso Wireless (fka CLYW)

[litton51]

So what happens when a company enters into this process?

Let me explain how it works.

In a receivership, the state court will act as a referee in the proceedings. The court appoints a receiver who has a trustee duty to the court.

The receiver maximizes the value of the estate and decides the best way to protect all creditors and shareholders involved. Often the receiver will liquidate the assets of the business and shut it down. But this is not always the case. The outcome of a receivership often depends on various things like the causes of the business problems, the amount of remaining money and possibility for the business to continue running.

Further, anyone going into this process should understand that it is not free. It is indeed less expensive than a bankruptcy. But the court pays receivers by the hour and there may be other fees such as an incentive fee if the receiver does a good job.

And a competent receiver can make all the difference when a troubled business needs to survive. He or she may even work closely with key employees to handle sales, marketing, production and financial matters efficiently.

If there is no hope for the business in the end, a well-appointed receiver can ensure that everyone involved receives more money than would normally be possible through a bankruptcy. If it becomes necessary for the company to be sold, the final price tag can be improved because the business is worth more if it can be run as a going concern.


http://www.businessreceivership.com/