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Assignment for the Benefit of Creditors

Small businesses in bankruptcy can apply for PPP loans though risky

PPP Loans for Chapter 11 Debtors? Maybe…But You Have Other Options

The SBA’s Views, Court Rulings and Options for Your Company You need to restructure your debt and/or deal as soon as possible with assertive creditors. You want to preserve your company, and you would benefit (or already have benefited) from Paycheck Protection Program (PPP) funds as a bridge. What do you do? Can you risk […]


An investor hands over keys to a distressed asset as part of an assignment for the benefit of creditors, or ABC

Selling Distressed Assets: The Assignment for the Benefit of Creditors Alternative

An Alternative to Chapter 11 and Chapter 7 Liquidations Financially distressed companies faced with unlikely prospects for reorganization – and the creditors who can influence their decisions – often take advantage of the chapter 11 liquidation option, where the debtor’s assets can be sold free and clear of all liens, claims, and encumbrances. This leaves […]


The Road to an Assignment for the Benefit of Creditors (ABC): A Case Study

This detailed story illustrates how a troubled company considered its duties and its options, then executed a strategy using an Assignment for the Benefit of Creditors (“ABC”) to mitigate successfully its potential losses. This story puts meat onto more skeletal discussions of ABC rules and how they compare with competing resolution structures under the Bankruptcy […]


Strategic Alternatives For And Against Distressed Businesses

The 2019 edition of Strategic Alternatives For And Against Distressed Businesses was just released by West Publishing Company. This 1,800+ page treatise, which is a product of more than 100 contributors, is the only resource which provides a state-by-state comparison on a chapter-by-chapter basis of assignments for the benefit of creditors and receiverships. DailyDAC / […]


Managing Cash and Stakeholders to Turn Around a Company

Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate the situation. When the cash runs out and the company is unable to pay its employees or vendors, the ice cube has melted. The business has failed, and recoverable value has collapsed.


RECOMMENDED READING: Assignments for the Benefit of Creditors: An Overview With a California Flavor

In “Assignments for the Benefit of Creditors: Simple as ABC?” Robert L. Eisenbach III provides a brief and clear summary of ABC procedures, and illustrates the process usefully with a hypothetical scenario of a cash-negative company with insufficient money to fund further operations and no likely prospects for credit, and which has specific technology assets that a […]


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