Receiverships

Historically grounded in equity jurisprudence, receiverships provide one of the most formidable and practical remedies available to creditors. Upon appointment by the court, receivers often take exclusive possession of a company, a secured creditor’s collateral, or any other property in need of protection or liquidation. Receivers, as an arm of the court, can be empowered to investigate fraud, prevent waste, marshal assets, and liquidate property as directed by the court. The receiver’s duties often present complex practical and legal challenges that test the boundaries of the court’s equity jurisdiction.  

Snell & Wilmer’s insolvency attorneys have the practical and legal experience needed to handle the unique challenges of all types of receiverships.

Specific or Special Receivers

A specific, or special receiver is appointed over only certain assets of the defendant, and are usually sought by secured creditors seeking to protect their collateral pending foreclosure or sale. Snell & Wilmer’s attorneys regularly assist secured creditors in obtaining the appointment of a receiver over their secured property, and guiding the clients through receivership sale process. Our experience extends to the representation of secured creditors and receivers involving the construction, marketing, sale and operation of commercial real estate; the foreclosure of real and personal property; and the marshaling and liquidation of other business assets.

General Receivers

A general receiver is appointed over all of the property of the defendant, and usually displaces the defendant’s ability to control, manage, or operate the property placed into receivership.  Our attorneys regularly represent partners, shareholders, and members which seek and obtain the appointment of general receivers over a company when a dispute arises amongst the equity holders. We also regularly represent general receivers once appointed, and guide them through the practical and legal challenges they encounter as they take control of the company, investigate the financial affairs of the company, and assert claims necessary to maximize the value of the receivership estate.

Regulatory Receivers

Many state and federal government agencies charged with overseeing and enforcing laws and regulations have the authority to appoint a receiver to protect the public interest. Common examples include federal enforcement actions by the SEC or FTC, actions by state insurance departments, or actions by state securities divisions. These receiverships often involve securities fraud, fraudulent transfers, and Ponzi schemes. Snell & Wilmer’s attorneys have experience in representing regulatory receivers, and in defending against actions by regulatory receivers on the multitude of issues that arise in these contexts.

Post-Judgment Receivers in Aid of Execution

Although not as common as other types of receiverships, one of the most powerful tools in the judgment creditor’s arsenal is the appointment of a receiver to aid in collection. Our attorneys have significant experience appointing receivers, post-judgment, over judgment debtors or their property in situations when ordinary execution efforts fall short.

Snell & Wilmer’s bankruptcy and reorganization attorneys regularly represent receivers, lenders, business owners, investors, consumers, and creditors in a broad range of industries and business sectors in state, federal and administrative receivership proceedings.

Comprehensive Services: With more than 30 attorneys located across eight offices who focus their practice on insolvency related litigation, our firm has the breadth and depth of experience necessary to handle receivership matters of any size or complexity. Our insolvency attorneys also, when necessary, work with other professionals practicing in corporate and securities, real estate, tax, or intellectual property law to find solutions to even the most complex legal, financial and business issue that may arise in insolvency and receivership matters.

Dynamic Approach: Our attorneys understand the strategic use of receiverships from both the private party’s perspective and the enforcement agency’s perspective. Our pervasive understanding of the unique challenges associated with receivership law allows us to assist our clients in maximizing the result of the receivership process.

Results: Receiverships often involve fraud, mismanagement, and distressed property. Snell & Wilmer’s attorneys have the practical experience and legal knowledge of receivership law necessary to achieve results despite the challenging circumstances.

Our receivership experience extends to and beyond the following representative matters:

• Obtained orders appointing receivers in literally hundreds of cases for numerous national and local banks in cases involving defaulted loans ranging from $1-$500 million
• Represented secured lender in enforcement action and sale of portfolio of 6000+ units of apartments in the Southwest
• Represented secured lender in receivership action involving an approximately $90,000,000 construction loan involving a mixed-use shopping center in Arizona
• Represented national and international mortgage loan servicing companies in numerous receivership matters involving single asset entities, apartment complexes, mixed use buildings, and hotels
• Represented numerous court-appointed receivers in the wind-up and liquidation of various companies
• Represented court-appointed receiver in a bankruptcy turnover proceeding under 11 U.S.C. § 543
• Represented SEC-appointed receiver in several litigation matters
• Represented court-appointed receiver in action to liquidate the company’s numerous fast food franchise restaurants
• Represented multi-million dollar judgment creditor appoint a receiver over a recalcitrant individual judgment debtor to liquidate the judgment debtor’s intangible personal property
• Represented judgment creditor in appointing a receiver over an insolvent judgment debtor business entity in an action to dissolve the judgment debtor company
• Represented shareholder in dispute with other shareholders over the management of the company to obtain the appointment of a receiver over the company pending the outcome of the litigation
• Defended a third-party against an FTC-appointed receiver’s attempt to claw back money paid to the third-party by the operating company