Tips from a Nightclub Security Expert on Bar Patron Safety
Foreclosure is never a pleasant experience for any business. Fortunately, there are foreclosure alternatives worth considering and positioning your restaurant for. Should the worst come to pass, receivership is a better alternative that can help ease the pain a little bit. Going into receivership places the custodial responsibility of your business into the hands of a receiver. This includes all rights and intangible assets. The receiver effectively manages the business and determines whether the business can be saved, or should be gradually wound down and operations ceased. In many cases, requesting a receiver can trigger a settlement from creditors. Many times, debtors realize they have an opportunity to save legal costs and fees. Further, it also indicates that the best way to protect their investment in the business is to work with the receiver rather than risk losing the income stream from the asset before settlement can be reached. Equally important, a receiver is neutral in the matter. This means that the debtor is likely to receive a more favorable outcome than in a bankruptcy proceeding. Thus, they have no vested stake in the outcome going one way or the other. The receiver’s job is to simply settle the accounts and debts in an equitable and fair manner without going through the expensive process of litigating it out. Next, the receiver protects the property during receivership. They help ensure fixtures, etc. aren’t stripped from the property. This reduces liability for all parties involved. Conversely, during bankruptcy, a business is often left open for anyone to take what they want, however they want. Thus, the property owner would prefer receivership as it helps protect the property itself. Another aspect to consider is that during receivership the value of the business can be protected. Thus, if the business has a solid reputation, it’s a foreclosure alternative that may save the business and allow it to be turned over to new ownership and management. This is an ideal scenario wherein the debtor can recoup their loss over time.
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