receivership
n. uncountablen. a legal process where a company is taken over by a court-appointed person to manage its debts and assets. This usually happens when a business cannot pay its bills.
n. a legal status in which a company is placed under the control of a court-appointed official to manage its assets and debts. Often used in the context of corporate insolvency or bankruptcy proceedings.
The company entered receivership after failing to pay its suppliers.
When the bank refused to extend the loan, the struggling retailer was forced into receivership to protect its remaining assets.
The transition into receivership allows the court to appoint a neutral third party who can assess the company's liabilities and determine whether a restructuring is feasible or if liquidation is necessary.