Receivership is where a bank or lender appoints an Administrative Receiver who must be a licensed insolvency practitioner. This can only happen on a debenture created before the 15th September 2003. After that date they must appoint an Administrator.
It could also mean a Law of Property Act Receiver appointed by a fixed charge lender (mortgage or loan) over a property.
The reason the law changed in 2003 and Receivership has been gradually phased out is that banks could appoint a Receiver just to get in the bank’s loan, mortgage or overdraft and the Receiver only had a duty to the bank. Therefore they would often ignore the other creditors and the employees which could leave them in a very precarious and uncertain position. Since 2003 an Administrator when appointed must deal with all creditors and employees as well.