can a first charge holder in this case the bank instruct their preferred receivers to take possession of properties owned by a company and not put the company in administration, leaving that company to deal with other creditors with no income i.e rental income from the properties
System of Law: England-and-Wales
I asked them to take into account other creditors to which they answered we are only working for the bank who instructed them and that they have not put our company into administration, merely selling off the properties in this case 14 houses to recover the banks loans
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Can you confirm this relates to LPA rent receivers as opposed to a repossession please?
They were appointed as fixed rate receivers to manage until sold 14 domestic properties all occupied by tenants
Lenders normally have a right to applint LPA receivers under the terms of the mortgage deed and do not need to place the company i administration or otherwie to exercise this right.You can ask the lender for the basis of their authority for appointing the receivers but it is likely to be the terms of the mortgage which you should consder reviewing. If you do not have a copy you can ask for one from the lender.
LL.B (Hons), Prof Dip Law & Practice. 9 years experience in private practice in England
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