Using assignments for the benefit of creditors, often referred to as “ABC” is an alternative option to bankruptcy for companies that are having trouble meeting their financial obligations. The company will be able to sell off assets in order to create proceeds that can be divided among the creditors and applied toward outstanding debts. Mancuso Law is capable at representing those on any side of an ABC to ensure that the process maximizes the benefit for its client.
While the ABC process can be complex, it is usually quicker and more efficient than a bankruptcy filing. It will also allow the company to control the timing of the asset sales and even sell the entire business if that benefits the creditors. There are four different parties that can be in some way involved in an ABC.
- The company that is needing to be liquidated
- The assignee – an individual responsible for managing and selling off the assets
- Those who wish to purchase either assets or the company itself
- Creditors seeking payment through the ABC process
Any of those parties would be wise to retain legal counsel to protect their interests during an ABC proceeding. Nate Mancuso is an experienced attorney in Florida and New York law, and can provide you with council on these matters. Call our office today for a free consultation on the details of your situation