DIFC
Out-of-Court Receivers/Administrative Receivers
Efficient enforcement of security without court involvement.
What does this entail?
In the DIFC, a secured lender may appoint a receiver or administrative receiver over charged property, in accordance with the terms of an instrument, namely, a floating or fixed charge or both. A fixed charge typically attaches to specific identified assets, most commonly real estate, while a floating charge generally extends over all, or substantially all, of a company’s business and undertaking.
A receiver’s primary duty of care is owed to the appointing creditor, although a duty of care is also owed to guarantors. The receiver’s role is to take control of the charged assets, preserve and realise them at the best possible price and apply the proceeds towards the reduction of the company’s secured indebtedness.
Get in Touch
Chris Iacovides
Chief Executive Officer
Andri Antoniou
Director - Licensed Insolvency Practitioner
Marios Kofteros
Director - Licensed Insolvency Practitioner
When is it appropriate?
Out-of-court receivership is an appropriate enforcement option where a secured lender holding the benefit of a fixed and/or floating charge wishes to enforce its security quickly while retaining control over the enforcement strategy. It is particularly suitable where charged assets can be realised independently, or where delay is likely to diminish asset value.
It may also be used as an alternative to court-led insolvency proceedings where a focused, asset-specific recovery is the primary objective.
At present, this mechanism is not widely used in the DIFC. This is largely because secured lenders have not traditionally required security instruments that include both fixed and floating charges, which are necessary to support these types of enforcement rights. Where such security is in place, however, a lender may, upon default, following demand, appoint a receiver or administrative receiver to take control of and realise the secured assets for its benefit.
How we can help
We advise secured creditors on appointment strategy, accept appointments where requested, take control and manage, where necessary, a company’s affairs and realise its assets for the benefit of the appointor.
Next steps
Speak to our team to assess whether out-of-court receivership is appropriate under your DIFC security structure.
Key Benefits
Speed, flexibility and creditor-led enforcement
- Swift appointment and action
- Asset-focused recovery approach
- Potential to preserve value through managed realisation
Experienced, Trusted Advisers
Our services are delivered by experienced, qualified professionals who follow a structured and transparent process, from initial assessment through to implementation. We combine technical expertise with a practical approach to ensure each engagement is managed professionally and focused on achieving appropriate outcomes for all stakeholders.