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An Alternative to Bankruptcy | General Assignment
The Assignment For the Benefit of Creditors (ABC)
If closure is required, considering an Assignment for the Benefit of Creditors is an alternative to bankruptcy. The Debtor company seltects the Assignee...
- Debtor company selects, and transfers all assets to, assignee (e.g., Sherwood Partners, LLC)
- Assignee is a fiduciary for the benefit of creditors
- Assignee’s duties:
- Operate business (Sherwood’s Operating ABC)
- Maximize net proceeds from the assets
- Distribute proceeds to the creditors
- Generally wind up the business