{"id":179,"date":"2026-07-16T16:04:12","date_gmt":"2026-07-16T20:04:12","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/?p=179"},"modified":"2026-07-16T16:04:13","modified_gmt":"2026-07-16T20:04:13","slug":"bankruptcy-court-holds-receivership-order-divests-debtors-manager-authority-file-chapter-11","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/2026\/07\/16\/bankruptcy-court-holds-receivership-order-divests-debtors-manager-authority-file-chapter-11\/","title":{"rendered":"Bankruptcy Court Holds That Receivership Order Divests Debtor&#8217;s Manager of Authority to File Chapter 11 Petition"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/www.duanemorris.com\/attorneys\/jamesbillingsley.html\">James Billingsley<\/a> and <a href=\"https:\/\/www.duanemorris.com\/attorneys\/geoffreyaheaton.html\">Geoffrey A. Heaton<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a loan goes into default, one remedy that a secured lender may have is to seek the appointment of a receiver over its collateral.\u00a0However, if the lender succeeds and a receiver is appointed, the defaulting borrower\u2019s \u201ccounterpunch\u201d may be to file for Chapter 11.\u00a0A borrower\u2019s bankruptcy filing opens the door to potentially significant delay, uncertainty and expense for the secured lender in its efforts to recover on its loan.\u00a0A recent bankruptcy court decision highlights one potential way to reduce the risk of a bankruptcy proceeding following the appointment of a receiver: through language in the receiver\u2019s appointment order that divests the debtor\u2019s management of authority to act on behalf of the debtor.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.duanemorris.com\/alerts\/bankruptcy_court_holds_that_receivership_order_divests_debtors_manager_authority_file_0726.html\">Read the full  <em>Alert<\/em> on the Duane Morris LLP website<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By James Billingsley and Geoffrey A. Heaton When a loan goes into default, one remedy that a secured lender may have is to seek the appointment of a receiver over its collateral.\u00a0However, if the lender succeeds and a receiver is appointed, the defaulting borrower\u2019s \u201ccounterpunch\u201d may be to file for Chapter 11.\u00a0A borrower\u2019s bankruptcy filing &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/2026\/07\/16\/bankruptcy-court-holds-receivership-order-divests-debtors-manager-authority-file-chapter-11\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Bankruptcy Court Holds That Receivership Order Divests Debtor&#8217;s Manager of Authority to File Chapter 11 Petition&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6,8,65,80],"ppma_author":[37],"class_list":["post-179","post","type-post","status-publish","format-standard","hentry","category-general","tag-bankruptcy","tag-chapter-11","tag-geoffrey-heaton","tag-james-billingsley"],"authors":[{"term_id":37,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-content\/uploads\/sites\/47\/2020\/10\/dmlogo.jpg","author_category":"1","last_name":"Davies","first_name":"Thomas","job_title":"","user_url":"https:\/\/www.duanemorris.com","description":"<a href=\"http:\/\/www.duanemorris.com\">Visit the Duane Morris website.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts\/179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/comments?post=179"}],"version-history":[{"count":2,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts\/179\/revisions"}],"predecessor-version":[{"id":182,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts\/179\/revisions\/182"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/media?parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/categories?post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/tags?post=179"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/ppma_author?post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}