Receivers & managers, controllers & AFMIP
Maximising value through enforcement requires a tailored approach
Each lend you make is different and therefore no two enforcement scenarios are the same. Each lender, business and set of circumstances involved in an enforcement scenario brings its own challenges – and requires a tailored approach.
At KordaMentha, our registered liquidators have acted as Receivers, Receivers and Managers, and Agents for Mortgagee in Possession (AFMIP) on some of Australia’s most complex and high-profile appointments.
Our strength lies in the breadth of our expertise. By drawing on specialists in restructuring, real estate, corporate finance, performance improvement and forensic investigations, we deliver solutions that address every dimension of an enforcement.
This integrated and tailored approach ensures precise outcomes that protect and maximise value for stakeholders, while maintaining transparency and lender confidence throughout the process.
Roles and responsibilities in enforcement appointments
What are the roles and their responsibilities?
When lenders choose to enforce security, the choice of appointment matters. Each role – Receiver, Receiver and Manager, or AFMIP – carries distinct powers, duties and compliance obligations under Part 5.2 of the Corporations Act 2001. Understanding these differences is critical to selecting the right and most effective enforcement strategy.
Receiver or receiver & manager
When appointed as receiver or receiver and manager, we assume control of secured assets and, in the case of a Receiver and manager, the business itself to preserve value during enforcement. Unlike a voluntary administrator who acts for all creditors, a receiver acts for the secured creditor that appoints them. After taking control of secured property and in the case of operating businesses, stabilising operations, we will develop a realisation plan and consult with the secured creditor.
A receiver or receiver and manager will typically operate with an indemnity from the secured creditor that appointed them. When we take any appointment, we ensure strict compliance with the Corporations Act at every step to manage not just our liability but also the obligations of the secured creditor.
Key responsibilities of a receiver & manager include:
- Taking possession of secured property.
- Managing or trading the business to maintain value.
- Realising assets and ensuring that assets are realised for market value or the best price available.
- Complying with statutory reporting obligations to ASIC and stakeholders.
Agent for the Mortgagee in Possession (AFMIP)
When appointed as AFMIP, we manage and sell real property on behalf of a mortgagee (secured lender). This approach is common in the enforcement of real estate assets where the lender takes possession of the property and seeks to recover debt through the sale of the property. Our team ensures that process, from property management to sale execution, is compliant, transparent and delivers the best possible market outcome.
Key responsibilities of an AFMIP include:
- Taking possession of the property.
- Managing the property’s leases and maintenance until sale.
- Conducting the sale in accordance with legal requirements.
How we help
At KordaMentha we understand that every enforcement scenario is different and come with their own unique challenges.
We bring clarity, control and tailored expertise to enforcement situations of all sizes and levels of complexity. When enforcement is unavoidable, lenders need a partner that works alongside you to deliver a tailored solution that charts the way to the best possible outcome for all stakeholders.
Why choose us?
- Multi-disciplinary capability: Our team brings together specialists in restructuring, real estate, corporate finance, performance improvement and forensic investigations to address every dimension of an enforcement.
- Tailored strategies: We take the time to understand your priorities and the unique dynamics of each engagement, ensuring that our approach aligns with your objectives.
- Proven track record and experience with complexity: From complex trading business to multi-asset portfolios, we have delivered successful outcomes across Australia and the region’s most challenging restructuring appointments.
- Operational and strategic insights: We deliver beyond statutory roles and provide practical solutions that preserve value, manage risk while maintaining stakeholder confidence and reputation.
- Independent and trusted advisors: We provide objective advice and act without conflicts, ensuring decisions are made in the best interests of stakeholders.
Speak to our enforcement specialists to explore a solution designed for your situation.
Who we help
Depending on the role of appointment, we can work with:
Secured creditors
We can provide tailored enforcement strategies and act as receivers or AFMIPs to protect your position.
Learn more about our services for lenders.
Legal advisors
We partner with law firms to deliver efficient and compliant enforcement outcomes.
