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Speed of response |
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A receiver has to preserve the assets of a company as a
going concern. The business will deteriorate on the appointment of a
receiver and may also be losing money. |
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Cash |
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A receiver will almost invariably sell for cash. |
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Suspect data |
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Latest information will not be warranted. It will be
necessary to carry out an investigation to produce projections and the
receiver is likely to permit access to employees and records. |
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Supplier attitudes |
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Generally favourable but credit will be hard, the key
danger is the monopoly supplier seeking to recoup his losses. |
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Customer attitudes |
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Variable and permission should be sought for direct
contact. |
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Retention of title |
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Suppliers will try to continue their claims.
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Hiving down |
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The receiver transfers the trading assets to a new
subsidiary. The purchaser acquires the shares in the subsidiary and may
benefit from tax losses. |
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Redundancy liabilities |
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The Transfer of Undertakings (Protection of Employment)
Regulations 1981 state when a trade is transferred so are the
liabilities under contracts of employment. The employees can be
dismissed before a sale process takes place, but avoiding TUPE
obligations is difficult. |
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Warranties |
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The receiver will not provide warranties. |
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Assets purchase |
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Considerably more straightforward. |