Troubled businesses may find themselves in receivership for many reasons—some innocent and others more sinister. When businesses fail, they often leave damaged parties in their wake, including investors, creditors, vendors, and even families who may be entitled a portion of the proceeds from the winding down. At the same time, the receivership entity’s own clients may attempt to avoid paying for goods and services previously received, hoping for a windfall in the chaos of liquidation.
BCG’s attorneys have been retained as litigation counsel by the receiver in numerous cases, including to bring derivate claims against management and to collect accounts receivable on behalf of the receivership estate. We understand the procedural, strategic, and insurance issues unique to receiverships. And under appropriate circumstances, BCG may represent receivership estates on a contingency basis, allowing the receiver to stretch scarce resources while still aggressively pursuing relief owed to the estate.