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Assignment for the Benefit of Creditors

In 2023, commercial Chapter 11 filings rose by 72% as compared to 2022. Read more about this surge and what to consider in 2024.

Ordinary asset purchase? Article 9 sale? Bankruptcy acquisition? When buying a distressed business, the type of purchase should be top of mind.

An assignment for the benefit of creditors (ABC) can be a faster and more cost-effective alternative for a chapter 11 or 7 liquidation. Understand more about this alternative for selling distressed assets effectively.

In a Delaware assignment for the benefit of creditors case, court approval is not required for a sale, but, time, money, and preference can factor.

Sellers and buyers must know the key elements of selling a distressed business outside of bankruptcy. Levels of protection vary on both sides.

Assignment for Benefit of Creditors (ABC) might mitigate loss and preserve going-concern value for the company and its secured creditor.

A Series on the ABCs of ABCs, when it comes to claims there’s a plethora of them. From secured, to unsecured, to bankruptcy, and trade. Read all the basics in this installment of Dealing with Corporate Distress. This Installment expands on the complexity of claims and claim priority in bankruptcy.

A curious mystery unraveled. Learn about the significant aspects of an Assignment for the Benefit of creditors, and why knowing the Assignee is important.

What are your options when handling your distressed business? Pursing an Assignment for the Benefit of Creditors is one of your options. The DailyDAC Editors offer reading recommendations to fill you in on the ABC process.

Considerations for Companies in a Cash Crisis A liquidity crisis is a severe financial situation in which a company does not have enough cash or cash-convertible assets, which can lead to defaults and bankruptcy. Managing cash is critical when working to preserve or maintain solvency in order to maximize opportunities for a successful turnaround or corporate restructuring. Near-Death Liquidity Is Like a Melting Ice Cube Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate this […]