CHARLOTTE, N.C. (FOX 46 CHARLOTTE) – Uptown’s Epicentre has been appointed ‘a receiver’ after it defaulted on its $85 million mortgage.
The receiver’s tasked with collecting rent from tenants and managing the property of this former nightlife and dining hotspot. This may be a step towards the return of the Epicentre’s good old days.
To begin with, to get to receivership there are certain requirements under the law such as:
- (1) to preserve the specific property which is the subject of litigation
- (2) to tide an individual or corporation over a temporary period of financial embarrassment; and
- (3) as a state substitute for federal bankruptcy, to prevent preferences and to assure the equitable distribution of the assets of an insolvent.
Since receivership results in severe damage to the credit and reputation of a company, it is considered a harsh remedy. There is no right to receivership. It is within the court’s discretion whether to grant it.
Under the law, the receiver must give the court a full inventory of all estate, property, and effects of the corporation, its nature and probable value, and an account of all debts due from and to it within 30 days but the court has power to ask for information and updates at any time.
The receiver is also in charge of making improvements to the property, which could be the answer to revitalizing this former nightlife and shopping hub.