Definition - What does Receivership mean?
Receivership is part of a commercial bankruptcy wherein a company goes bankrupt and the assets of the company need to be liquidated. The company is handed over to a state-determined organization that has the task of selling off the assets of the company and paying off the debtors that can be paid with the money raised, as well as determining the priority of the payments.
Justipedia explains Receivership
Receivership is a process that is determined by bankruptcy and commercial law, which makes sure that when a company becomes insolvent, steps are made to make payments to the debtors rather than just taking the remaining assets and not paying any debts.
A liquidator will be appointed by the receivers, who will place an ad in a newspaper inviting debtors to make claims to be paid. They then sell off all the assets left in the company, pay the debtors as much as possible, and formally declare the business as closed.