A Receiver appointed specifically under a fixed charge has limited powers as they can only deal with the fixed charge property and not the business generally. A fixed charge receiver may also be referred to as an LPA receiver where they are appointed under the law of Property Act 1925 to take back control of the property, where the borrower has defaulted on the terms of its loan.
LPA receivership is not a formal insolvency procedure and so should not be confused with an Administrative Receivership. While LPA receivers are commonly appointed where the borrower has failed to repay a loan, it can also occur where there have been other breaches of the loan, for example a breach of loan to value covenant. A fixed charge receiver is usually given specific powers to collect rent when due in respect of the property or sell the property.
To discuss your potential needs in the area of Fixed-Charge Receivership, please contact: