What does receivership mean?

[Omani]

English Grammar Tests, Elementary Level

ESL/EFL Test #95 "auxiliary verbs: was, did, have", question 6

The employees ......... informed last night that their company was going into receivership.

(a) was
(b) were
(c) did
(d) had

English Grammar Tests, Elementary Level

ESL/EFL Test #95 "auxiliary verbs: was, did, have", answer 6

The employees were informed last night that their company was going into receivership.

Correct answer: (b) were

Your answer was: correct
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I really like English and get a lot of information from your site.
A question I want to know is that what 'receivership' means?
I think the meaning is like a 'bankruptcy'. Is it right?
Pleas let me know the exact meaning.

Many thanks in advance.
Omani

[Mister Micawber]

.
Yes. Receivership = a court action that places property under the control of a receiver during litigation so that it can be preserved for the benefit of all; a type of bankruptcy a company enters when a receiver is appointed by bankruptcy courts or creditors to run the company.
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Canadian-American native speaker
who teaches English for a living at Mister Micawber's
ESL cafe: Interview with Mr. Micawber