An Insolvency process where a Secured Lender appoints an Administrative Receiver under the terms of its charge to realise sufficient funds (or as much as possible) to repay the lender’s indebtedness. Since 15 September 2003 Administrative Receiverships have become uncommon after Insolvency legislation changed.
To appoint an Administrative Receiver the Secured Lender must hold a charge over the whole or substantially the whole of a company’s assets. Without this the lender cannot appoint an Administrative Receiver.