When a company goes through a disruptive financial process, such as bankruptcy, its often placed under receivership. Under receivership, another individual (known as a trustee) manages the company. The trustee’s goals are to manage the company in its best interests while also ensuring that all debts that can be repaid are repaid. The trustee is a third party who does not benefit from this activity, and who can be trusted to moderate everything in the best interests of both the company and its creditors. Receivership may also occur during processes such as foreclosure.
During a receivership, a separate EIN is usually used. This is because the property is no longer in the hands of the company, but instead in the hands of someone who is entrusted to manage the company. But this separate EIN and entity will be dissolved once receivership is complete. If the company can be successfully rehabilitated, the receivership will dissolve and the company will be placed back into its own management. If the company cannot be rehabilitated, the company itself may be dissolved, and its assets will be distributed to creditors.