The people called in to help in a situation when a company facees insolvency are known as receivers and liquidators.The receiver and liquidator play different roles in helping the company in sucy situations.
The liquidator’s role in an insolvency situation focusses on liquidating a company’s assets and turning them into cash in order to pay satisfy the company's creditors.
on the other hand, Receivers are appointed to manage a company’s assets for the benefit of the secured parties.
This is the major difference, receivers focus on the recovering assets to the benefit of the secured creditors, which liquidators look primarily at the interest unsecured creditors.
Liquidators do not concern themselves with rescuing the company but are concerned with getting the most out the company’s assets for the sake of the creditors.
Receivers are appointed by creditors in order to have the insolvent company's assets or properties seized. The receiver's rights and privileges will spring from the individual terms of the loan agreement in question.
