What is a Receivership?
A receivership is a remedy that is authorized by a court’s equity powers. In certain circumstances the court may appoint a Receiver to execute a judgment or to protect property which is subject to a dispute. To properly protect the asset, a court appointed Receiver must be knowledgeable in both law and business operation. Upon appointment, the Receiver becomes an officer of the court to receive, care for, administer and/or dispose of property under the orders of the court. The Receiver’s powers and responsibilities are defined by the order of appointment, and the court appointed Receiver is an officer of the court and not an agent of the company or creditor.
There are many instances where a court might appoint a Receiver, but they generally fall within one of the following categories:
Enforcement of a Court Judgment
Interim Corporate Management
Real Property Dispute (Rents, Issues & Profits)
How is a Receiver appointed?
A Receiver is appointed at a hearing before the court at which time an order is entered. Most courts expect that litigants will have attempted other means for enforcement prior to requesting the appointment of a Receiver. Should the appointment of a Receiver be necessary, it is accomplished by filing a motion or a complaint under one of the prescribed statutory provisions.
A Receiver prepares monthly operating reports, prepares and files opening, interim and final reports, and works in conjunction with legal counsel to serve all parties with the appropriate reports and pleadings.
After a court-ordered seizure of property, the receiver quickly takes control, which is critical to conserving the overall value of the asset. We will conduct a full audit of accounts payable and accounts receivable to determine the asset valuation and liabilities and produce a property condition report, and feasibility analysis. The Company will supervise and account for all receipts, disbursements and operations, and at the same time implement an aggressive marketing plan to improve operation of the property and, most importantly, protect the value of the asset.
As a receiver for real property, the Company handles problem management issues, such as leasing and tenant workouts. Supervision of repairs and maintenance to protect the value of the property is undertaken by the Company’s construction affiliate (owned by principal, Mike E. Brown), FPH Construction (www.fphconstruction.com).
As a court appointed Receiver we:
Take possession of property and assets pursuant to an order of the Courts
Sell or manage assets in order to optimize proceeds
Manage accounts payable and accounts receivable and pay creditors
Manage and control property by leasing, collection of rent and maintenance
Core Service Capabilities:
Types of Receiverships:
Michael Brown acts as a co-consultant for Kitsap County with regard to the disposition of the Kitsap County Consolidated Housing Authority’s (KCCHA) collateralized assets in order to repay KCCHA’s loan workout of $40.5million. The assets include 14 properties of varying uses and size including the Tree Tops Apartments (Silverdale) which the County recently sold for $20.6 million and 45 units in the Harbor side Condominium project (Downtown Bremerton) which has sold 12 units to date. To date approximately $25 million in assets have been sold.