Court-Appointed Receivership: Best Practices for Lenders
As court-appointed receiverships become an increasingly common enforcement mechanism for secured lenders, RMP Partners outlines the key considerations and best practices for navigating the process effectively.
Introduction
Court-appointed receiverships represent one of the most powerful tools available to secured creditors seeking to protect collateral and maximize recovery values. When deployed appropriately, a receivership can stabilize a distressed business, preserve going-concern value, and facilitate an orderly disposition of assets — often producing significantly better outcomes than a rushed foreclosure.
When to Consider Receivership
Lenders should evaluate receivership as an option when one or more of the following conditions are present:
- Borrower management has lost operational control or is actively dissipating assets
- There is credible evidence of fraud, misappropriation, or waste
- The business requires immediate stabilization to preserve going-concern value
- Other enforcement mechanisms (forbearance, workout) have failed or been exhausted
- A neutral third party is required to facilitate a sale process
Selecting a Receiver
The selection of a qualified receiver is one of the most consequential decisions a lender will make in an enforcement proceeding. An experienced receiver brings:
- Operational credibility with employees, vendors, and customers
- Established relationships with buyers and liquidators
- The ability to move quickly while maintaining legal compliance
- Experience navigating complex multi-party creditor dynamics
The RMP Partners Approach
RMP Partners has served as court-appointed receiver across dozens of engagements spanning retail, real estate, healthcare, and professional services. Our team is equipped to assume operational control rapidly, stabilize the business, and execute a value-maximizing disposition strategy.
We work closely with lender counsel throughout the process to ensure alignment on objectives, timeline, and strategy.
Contact us for a confidential consultation regarding your enforcement situation.
Texas Receivership: Jurisdiction-Specific Considerations for Lenders
Texas lenders should be familiar with Chapter 64 of the Texas Civil Practice & Remedies Code, which governs the appointment and authority of receivers in the state. A receivership petition in Texas must demonstrate that the property is in danger of being lost, removed, or materially injured, and that appointment is necessary to protect the petitioner's interest. RMP Partners and our Equitable Asset Management affiliate have direct experience navigating the receivership petition process in Harris County and other Texas jurisdictions — and can advise lenders on when and how to seek appointment.
Wayne M. Greenwald
Of Counsel, Bankruptcy Division
Wayne M. Greenwald brings 30+ years of debtor-creditor law experience to RMP Partners, having served as former assistant chair of the Defense Research Institute's Special Litigation Group on Creditors' Rights and Bankruptcy. He advises lenders, receivers, and trustees on complex insolvency and enforcement matters across Texas and beyond.
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RMP Partners and Equitable Asset Management provide court-appointed receivership services in Texas.
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