Pressures by creditors for repayment can often be so severe as to threaten the survival of a company. The appointment of a judicial manager can freeze all proceedings or executions against the company or its assets and thus provide an opportunity for arrangemen ts to be made with the company's creditors. This could ensure the survival of the company as a going concern or effect a more advantageous realisation of the company's assets than on a winding up.
Receiver and Manager
This relates to both appointments by the Court and by debenture holders. Receivership does not necessarily mean the closure of a business as a receiver may decide that a company can be maintained as a going concern through the implementation of stricter financial controls and/or the trimming of unprofitable operations. In cases where KPMG's review and assessment shows that the business is unlikely to be profitable and there are no circumstances to justify continuation of the company's business, there may be no alternative but to terminate the company's operations in order to protect the position of the debenture holder and other interested parties.
Liquidator
KPMG partners can accept appointments in respect of solvent and insolvent windings up. KPMG advises on all aspects of liquidations whether for companies seeking to wind down their businesses in an orderly manner, or for creditors seeking to protect their interests.
Trustee in Bankruptcy
KPMG partners can be appointed as private trustees, upon the application of petitioning creditors, to administer the estate of an individual bankrupt. We are able to advise on all aspects of bankruptcy and to make periodic reports on the realisation process.
Receiver of Income
Such appointments are made by mortgagees pursuant to Section 24 of the Conveyancing and Law of Property Act (Cap 61). As receiver of income, KPMG will collect all rental income accruing to the mortgaged properties. Rental income collected will be applied for the benefit of the mortgagee after settlement of direct expenses relating to the mortgaged property.
Agent for Mortgagee-in-Possession
In situations where the mortgagee has entered into possession of the mortgaged property, KPMG partners may be appointed agents for the mortgagee-in-possession for the purpose of managing the mortgaged property. Our management function would include securing tenants, rental collection, settlement of outgoings and correspondence with statutory authorities such as the Comptroller of Property Tax in respect of property tax, vacancy rebates, and others.
For further information about our services or if you would like one of our professionals to contact you, please contact us.
