what is a receivership 
a receivership is a court appointed tool that can assist creditors in recovering funds in default and help troubled companies avoid bankruptcy having a receivership in place makes it easier for a lender to obtain the funds that are owed to them if a borrower defaults on a loan a receivership may also occur as a step in a company s restructuring process that s initiated to return a company to profitability it could arise as a result of a shareholder dispute over completing a project liquidating assets or selling a business dennis madamba investopedia