In which receivership type are creditors identified and assets distributed?

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Conservation focuses on preserving the value of the estate while handling creditors and assets in an orderly way. When a receiver is appointed to conserve a distressed entity, a primary step is to identify all creditors and their claims so that assets can be gathered, safeguarded, and allocated according to priority. This explicit identification of who is owed what, and the plan to distribute assets to those creditors, is central to this type of receivership. The goal is to protect value for creditors and set up options for a future path—whether that’s restructuring, sale, or, if necessary, wind-down.

In contrast, liquidation centers on winding down and paying creditors from the assets, rehabilitation aims to restructure to allow ongoing operations, and run-off involves ceasing new business and managing remaining obligations. The emphasis on identifying creditors and coordinating asset distribution within the conservation framework is what makes it the best fit for this scenario.