Delaware Court-Appointed Receiver and Custodian Services

Protecting and Maximizing Value For All Stakeholders

• 8 Del. C. § 226, Appointment of custodian or receiver of corporation on deadlock or for other cause
• 8 Del. C. § 291, Receivers for insolvent corporations; appointment and powers
• 8 Del. C. § 279, Trustees or receivers for dissolved corporations; appointment; powers; duties
• 6 Del. C. § 18-805, Trustees or receivers for limited liability companies; appointment; powers; duties

Under Delaware law, the Court of Chancery may appoint a custodian, and if the corporation is insolvent, a receiver, in specified deadlock and abandonment circumstances under 8 Del. C. § 226. Delaware law also provides for receivers for insolvent corporations under 8 Del. C. § 291, for dissolved corporations under 8 Del. C. § 279, and for dissolved limited liability companies under 6 Del. C. § 18-805.  

For over 40 years in hundreds of assignments across industries and asset classes throughout the nation, EDS, with its principal office in the Greater New Orleans area, Slidell, Louisiana, has skillfully and judiciously served as Court-Appointed Receiver for creditors, attorneys, investors, and all stakeholders to preserve, protect, manage, operate, and otherwise handle the disposition of real and movable, tangible and intangible, assets in commercial foreclosures, bankruptcies, and myriad other legal proceedings.

Our capabilities, decades of state and federal Court-Appointed Receiver and Keeper experience, and unimpeachable credibility afford EDS an unparalleled opportunity to serve as a trusted Delaware Court-Appointed Receiver, Trustee, Custodian, Special Master, Special Magistrate, Liquidator, or in other such court-appointed fiduciary capacities.

For related insolvency remedy work, see our Delaware Assignment for the Benefit of Creditors Services.

A Delaware Court-Appointed Receiver is a court-appointed agent responsible for acting on behalf of the court and managing the property, real and movable assets, and financials in a manner that is best for all parties involved until the final resolution of the legal dispute.

EDS Delaware Court-Appointed Receiver Services specialists are highly trained, highly skilled, highly credentialed, and highly experienced distressed assets, turnaround management, valuation, and disposition experts with decades of proven experience and unimpeachable credibility who master the facts and present clear, objective, and compelling findings to judges.

EDS Court-Appointed Receivers are officers or agents of the Court with a fiduciary duty to the Court and all parties involved in the litigation to preserve, protect, manage, and operate the business or property, real and movable, collect all receipts and pay all necessary bills associated with the business or property, including those related to insurance, utilities, and rents, and provide monthly or periodic accountings to the court and all interested parties. The Court may also allow the Receiver to make necessary improvements to the property as well as market it for sale or lease.

The role of a Delaware Court-Appointed Receiver can vary depending on the specific circumstances of the case, but they are generally responsible for managing the day-to-day operations of the business or property and ensuring that it is being run in a financially responsible manner. They may also be required to provide regular reports to the court on the condition of the business or property and any actions taken to protect and preserve the assets.

EDS Delaware Court-Appointed Receivers marshal onsite 24/7/365 throughout the nation to secure, preserve, protect, operate, maintain, and enhance the going-concern value of the businesses and business assets that might otherwise be lost during legal proceedings while actively pursuing permanent solutions.

The Court may also allow the Receiver to make necessary improvements to the property as well as market it for sale and/or lease. Where appropriate, these matters may also overlap with broader court-appointed receivership services and related distressed asset management assignments.

Receiverships are commonly utilized in matters involving:

• Corporate deadlock
• Distressed loan collateral enforcement
• Business divorce or shareholder disputes
• Insolvent corporations
• Dissolved corporations and dissolved LLCs
• Commercially distressed real estate
• Environmentally impaired properties
• Corporate insolvency and restructuring matters
• Regulatory enforcement actions
• Special assets and special situations

In Delaware, the statutory framework expressly addresses custodian or receiver appointments in corporate deadlock and abandonment matters, insolvent corporations, dissolved corporations, and dissolved limited liability companies.  

The impact of complex and contentious litigation in many distressed situations can complicate, if not destroy, stakeholders’ positions if not appropriately handled. Distressed and troubled accounts present many pressing challenges.

When problematic accounts face operational or financial difficulties, our experienced, street-savvy, and proficient crisis/interim/turnaround and workout management teams employ creative solutions that often immediately reverse and resolve these situations.

We specialize in providing 24/7/365 on-site crisis interim management teams to operate troubled accounts facing operational and financial difficulties. We are particularly skilled in providing transitional management in highly contentious special assets and special situations and in handling all efforts related to the wind-down and disposition of environmentally sensitive and Impaired Real and Movable Property, including Superfund and Brownfields Sites, Hospitality, Gaming, Resorts, HOA-Golfing Communities, Shipyards/Admiralty/Maritime, Aviation (Fixed and Rotor), Automotive, Manufacturing and Retail, Heavy Industrial, Oil & Gas/Minerals, and Commercial, Multifamily, and High-Value Residential Real Estate

EDS has served in complex court-appointed and fiduciary roles involving:

• State and federal court receiverships
• Court-appointed keeper assignments
• Commercial foreclosures
• Bankruptcies
• Distressed real estate and business assets
• Multistate and multinational corporate disputes
• Environmentally impaired industrial assets
• Asset recovery and liquidation assignments
• Municipal receivership services
• Special assets and special situations
• Aviation and admiralty-related federal seizure matters

EDS’s unparalleled level of expertise is recognized and appreciated in boardrooms and courtrooms worldwide.

EDS serves nationwide in Delaware Court-Appointed Receiver matters of varying size, complexity, and operational demands.

EDS is trusted to serve in complex Delaware receivership matters requiring experienced fiduciary oversight, operational control, and objective reporting.

Our award-winning receivership services have earned us the distinction of being the only Court-Appointed Receiver in the country that the United States Environmental Protection Agency (USEPA) allows to conduct such services on active Superfund Sites.

We are pleased to serve as Court-Appointed Keepers for the U.S. Marshals Service for federal court seizures of assets under aviation and admiralty jurisdiction.

For matters involving financial disputes, valuation issues, or business valuation in litigation, EDS also provides related Litigation Appraisal Services across all valuation disciplines, e.g., Business Valuation, Real Estate, and Personal Property, as well as valuation-related Alternative Dispute Resolution Umpire services.

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