On June 14, 2017, the new Oregon Receivership Code (Senate Bill 899) was signed into law by Governor Brown. It does not take effect until January 1, 2018.
It is the product of a lengthy drafting process by a select committee of the Oregon Law Commission which included two Sussman Shank partners, Jeff Misley and Barry Caplan. The new law will supplement ORCP 85 and will provide a comprehensive statute for guidance to court-appointed receivers, litigants, and third parties. Essentially, a receiver appointed under this statute will be able to liquidate businesses and/or sell assets free and clear of liens.
It will provide Oregon businesses and their counsel with an alternative choice for proceeding in lieu of filing for Chapter 11 relief if desired by lender plaintiffs and/or other third parties.
The new law will be the subject of further articles and programs as the time for its effective date gets closer.