Pub 1 2021 Issue 4

August 2021 | 9 business. The creditor will also consider whether any particular expertise is necessary, such as experience with real estate or agricultural property. III. Preparing to go to court Before heading to court to seek the appointment of a receiver, the secured creditor and its attorney should do a thorough review of the creditors’ loan documents and collateral position. If the creditor discovers any issues, the creditor may consider entering into a forbearance agreement with the debtor to resolve them. This review will also help prepare the creditor for arguments that the debtor may raise to contest the appointment of a receiver. IV. Receivership Administration In Missouri, the appointment of a receiver begins with the complaint, application to appoint a receiver, proposed order and related documents. After filing the initial pleadings, there will be a hearing on the application to appoint a receiver. In addition to MCRA and applicable case law, the receivership will be governed by the terms of the order appointing the receiver. Throughout the case, a general receiver will file monthly reports of its operations and financial affairs. A receiver can also sell the property of the receivership estate. MCRA specifically grants an available receiver the power to sell property free and clear of liens 2 , with liens attaching to proceeds. If necessary, the receiver can administer claims of other creditors. When the receiver has finished liquidating the assets and distributing proceeds, the court will discharge the receiver from its duties. ■ Andrea Chase is an associate in the Kansas City, Missouri, office of Spencer Fane LLP. Eric Peterson is an of counsel attorney in St. Louis, Missouri, office of Spencer Fane LLP. They are members of the firm’s Bankruptcy, Restructuring, and Creditors’ Rights Group. 1 Under MCRA, there are two types of receivers – general and limited. General receivers control substantially all of the debtor’s non- exempt property. Limited receivers control a limited portion of the debtor’s property. 2 There are some exceptions to the general receiver’s ability to sell free and clear, which are set forth in the statute. Receivership can be a beneficial tool. A receiver provides a level of control over the debtor’s assets and oversight over the debtor’s business.