Texas Court-Appointed Receiver and Custodian Services
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Skillfully and judiciously preserving, protecting, managing, operating, and maximizing value for all stakeholders.
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Texas Court-Appointed Receiver and Custodian Services
STATEWIDE RECEIVERSHIP SERVICES
EDS Texas Court-Appointed Receiver and Custodian Services are independent third-party neutral fiduciaries appointed by a court to take control of and manage a business or property that is involved in a legal dispute. The appointment of a Texas Court-Appointed Receiver or Custodian is typically done to protect the assets of the business or property while the legal dispute is being resolved. The Receiver or Custodian has the authority to operate and manage the business or property, and can also take steps to protect and preserve the assets until the dispute is resolved.
In practical terms, a Texas Court-Appointed Receiver and Custodian functions as an officer or agent of the Court, with a fiduciary duty to the Court and all parties involved in the litigation, to preserve, protect, manage, operate, and otherwise handle the disposition of troubled assets while maintaining clear, objective oversight during legal proceedings.
For over 40 years in hundreds of assignments across industries and asset classes throughout the country, EDS has skillfully and judiciously served as Court-Appointed Receiver and Custodian for creditors, attorneys, investors, and all stakeholders to preserve, protect, manage, operate, and otherwise handle the disposition of troubled assets, real and movable, tangible and intangible, in business disputes, commercial foreclosures, probate, divorce, bankruptcies, and myriad other legal proceedings.
For a broader fiduciary context, see our Court-Appointed Receiver Services and Receivership Services pages.
National Recognition, Government Engagements, and Operational Reach
Texas Receivership and Custodianship Framework
Texas Court-Appointed Receiver and Custodian Services
Protecting and Maximizing Value For All Stakeholders
- Texas Civil Practice and Remedies Code, Chapter 64 — Receivership
- Texas Business Organizations Code, Chapter 11 — Winding Up and Termination of Domestic Entity
- Texas Business Organizations Code § 21.761 — Appointment of Custodian
Under Texas law, a court of competent jurisdiction may appoint a receiver in specified circumstances under Chapter 64 of the Texas Civil Practice and Remedies Code. Texas law also provides for the appointment of a receiver in proceedings involving domestic entities under Chapter 11 of the Texas Business Organizations Code, including receiver provisions in Sections 11.401–11.414, and for the appointment of a custodian for a close corporation under Texas Business Organizations Code § 21.761.
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 and Custodian 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, Custodian, and Keeper experience, and unimpeachable credibility afford EDS an unparalleled opportunity to serve as a trusted Texas 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 Texas Assignment for the Benefit of Creditors Services.
Judicial and Fiduciary Context
A Texas Court-Appointed Receiver and Custodian is a court-appointed agent/officer responsible for acting on behalf of the court and managing the property, real and movable assets, and financialsunder the court’s directionin a manner that is best for all parties involved until the final resolution of the legal dispute.
EDS Texas Court-Appointed Receiver and Custodian 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 and Custodians 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 periodic or court-ordered accountings to the court and all interested parties. The Court may also allow the Receiver or Custodian to make necessary improvements to the property as well as market it for sale or lease.
Operational Responsibilities
The role of a Texas Court-Appointed Receiver and Custodian 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 Texas Court-Appointed Receivers and Custodians marshals on-site 24/7/365 throughout the state 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 or Custodian 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.
Common Situations Where Receiverships and Custodianships Are Utilized
Receiverships and Custodianships 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 Texas, the statutory framework expressly addresses receivership and Custodian remedies in creditor actions, partnership or co-ownership disputes, mortgage foreclosure matters, insolvency-related circumstances, certain domestic-entity proceedings, and custodianship for close corporations.
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.
Strategic Considerations in Distressed Asset Environments
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.
Professional Receivership and Custodianship Engagements
EDS has served in complex court-appointed and fiduciary roles involving:
- State and federal court receiverships and custodianships
- 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 throughout the world.
Court-Appointed Fiduciary Experience
EDS serves statewide in Texas Court-Appointed Receiver and Custodian matters of varying size, complexity, and operational demands.
EDS is trusted to serve in complex Texas receivership and custodianship 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.
How may we be of service to you?
— Discuss a Receivership Matter
Texas Court-Appointed Receiver and Custodian Services
Related EDS Receivership and Fiduciary Services Include:
- Nationwide Receivership and Fiduciary Services
- Nationwide Court-Appointed Receiver Services
- Delaware Court-Appointed Receiver Services
- Florida Court-Appointed Receiver Services
- Texas Court-Appointed Receiver Services
- Louisiana Court-Appointed Receiver / Keeper Services
- Court-Appointed Liquidator Services
- Assignment for the Benefit of Creditors Services
Frequently Asked Questions (FAQ)
What is a Court-Appointed Receiver or Custodian?
A Texas Court-Appointed Receiver is an independent third-party fiduciary appointed by a court to take charge of, preserve, manage, or administer property or business interests in specified circumstances. Under Texas law, a receiver may be appointed by a court of competent jurisdiction in certain creditor actions, partnership or co-ownership disputes, mortgage foreclosure matters, insolvency-related matters, and other cases recognized under the rules of equity. Texas Civil Practice and Remedies Code, Chapter 64, Receivership (statutes.capitol.texas.gov)
What responsibilities do a receiver and custodian have during litigation?
A Texas receiver’s or custodian’s responsibilities depend on the appointing order and the nature of the case, but commonly include taking possession or control of property, preserving and protecting assets, collecting funds or receivables, managing operations when authorized, pursuing or defending claims, and reporting to the court as required. In business-entity matters, Texas law also authorizes the court to appoint a receiver to rehabilitate the domestic entity and preserve its business and assets. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code, Chapter 11, Winding Up and Termination of Domestic Entity (statutes.capitol.texas.gov )
When will a Texas court appoint a receiver or custodian?
Under Texas law, a court of competent jurisdiction may appoint a receiver i or custodian in specified circumstances, including actions by creditors to subject property or funds to a claim, actions between partners or others jointly interested in property, mortgage foreclosure actions, cases involving an insolvent corporation or one in imminent danger of insolvency, and other cases in which a receiver or custodian may be appointed under the rules of equity. Texas law also provides for appointment of a receiver or custodian in proceedings involving domestic entities under Chapter 11 of the Texas Business Organizations Code. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code, Chapter 11, Winding Up and Termination of Domestic Entity (statutes.capitol.texas.gov )
How is a receiver different from a custodian in Texas?
In Texas, a receiver and a custodian are related but distinct court-appointed roles. A receiver is the broader remedy commonly used under Chapter 64 and Chapter 11 in asset, insolvency, foreclosure, and entity matters. A custodian is specifically addressed in the Texas Business Organizations Code for close corporations, where the court may appoint a custodian in a judicial proceeding under Section 21.761. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code § 21.761, Appointment of Custodian (statutes.capitol.texas.gov )
What types of matters commonly involve Texas receiverships and custodianships?
Texas receiverships and custodianships commonly arise in creditor remedies, commercial foreclosure matters, business divorce disputes, partnership and co-ownership conflicts, insolvent or distressed corporations, judicial winding-up proceedings, asset preservation disputes, and other extraordinary situations in which the court determines receivership relief is necessary. Texas law is especially flexible because Chapter 64 includes both specifically listed grounds and a broader equity-based basis for appointment. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code, Chapter 11, Winding Up and Termination of Domestic Entity (statutes.capitol.texas.gov )
Can a Texas receiver or custodian take control of business assets and pursue claims?
Yes, if authorized by the court. Texas receivers and custodians may take possession or control of property within the scope of the appointing order, and in entity cases, the court may appoint a receiver or custodian to rehabilitate the entity and preserve its business and assets. Depending on the order and the proceeding, that can include collecting assets, managing operations, and pursuing claims necessary to preserve or administer the estate. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code, Chapter 11, Winding Up and Termination of Domestic Entity (statutes.capitol.texas.gov )
Does a Texas receiver or custodian report to the court?
Yes. A receiver or custodian is a court-appointed fiduciary and acts under the authority and supervision of the appointing court. The receiver’s or custodian’s reporting, accounting, authority, and limitations are governed by the appointing order and applicable law.Texas Civil Practice and Remedies Code, Chapter 64, Receivership (statutes.capitol.texas.gov)
Are Texas receiverships and custodianships limited to insolvent corporations?
No. Texas receiverships and custodianships are not limited to insolvent corporations. Chapter 64 authorizes receivership in a range of proceedings, including creditor actions, co-ownership disputes, foreclosure matters, and equitable cases, while Chapter 11 provides additional receiver provisions for domestic entities, and Section 21.761 separately addresses custodians for close corporations. Texas Civil Practice and Remedies Code, Chapter 64, Receivership,Texas Business Organizations Code, Chapter 11, Winding Up and Termination of Domestic Entity,Texas Business Organizations Code § 21.761, Appointment of Custodian (statutes.capitol.texas.gov )
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