Law Commons^™

Corporations-Right Of General Creditors, After Appointment Of Receiver In Suit Brought For Foreclsoure Of Mortgage Covering Major Portion Of Assets, To Have Receivership Extended For Protection And Eventual Liquidation Of Unmortgaged Assets

Michigan Law Review

When the affairs of a corporation become so involved that it is not able to meet its maturing obligations as they become due and it is necessary either that the corporation be reorganized on a more sound financial basis or that its assets be liquidated in an orderly manner, to the best advantage of its creditors and stockholders, it is customary, as a basis for such reorganization or liquidation, to have a receiver appointed of all the property and assets of the corporation. Such receivership is usually precipitated by the filing in the federal court of a bill of complaint …