April 2021 Bar Bulletin
By William F. Malaier, Jr. and Karen Sutherland
Independent Asset Management and Protection
Receivership in Washington is typically faster, less contentious, and less costly than a chapter 11 bankruptcy proceeding. Receivership provides professional asset management, protection, and disposition. A receiver is a court appointed advocate for the interests of creditors and equity holders, who will often recover more through a receivership than through a chapter 11 restructuring.
Although a state court receivership has many similarities to a chapter 11 case, the receiver is independent from former management, and serves as an officer and agent of the Superior Court. In contrast, existing management typically remains...