Maximizing Value: Why Illinois Should Adopt the Illinois Receivership Act
4:00-7:00pm
Location: TBA
Receiverships are commonplace in many jurisdictions as parties seek lower-cost alternatives to the expense of chapter 11 bankruptcy or other out-of-court proceedings. This is not the case in Illinois, where receivership law is in serious need of an overhaul. The state’s receivership law is currently scattered between numerous statutes, rules, antiquated case law, and common law practices. This makes it exceedingly difficult for parties and courts to effectively administer commercial receiverships, resulting in unnecessary expenses and inconsistent outcomes.
On January 9, 2025, Representative Dan Didech introduced the Illinois Receivership Act, also known as House Bill 28, for consideration during the Illinois General Assembly’s 2025 spring legislative session. The Act is a significant piece of legislation that would provide a standard set of substantive and procedural rules for commercial receiverships while still affording courts the flexibility necessary to implement the most appropriate remedy for the circumstances of each matter. The key provisions of the Act include due process protections for all parties, standards for a receiver’s appointment, clearly defined powers and duties of a receiver, sales free and clear of liens, and a limited stay to protect receivership assets. The Act offers transparency and protection for all parties involved, including business owners, secured creditors, unsecured creditors, and other stakeholders. By establishing clear rules, the Act will help prevent waste, preserve value, and facilitate fair asset distribution.
Join us as we dive into the important provisions of the Illinois Receivership Act and discover how it will provide greater predictability for all stakeholders (secured creditors, unsecured creditors, borrowers, owners, and other parties in interest) and lead to greater efficiency and certainty in commercial lending transactions. The presentation be led by the primary drafters of the statute and advocates for the proposed legislation. Don’t miss this opportunity to stay informed about the substantial improvements coming to Illinois receivership law.
Moderator: Matthew Brash | Newpoint Advisors