Assignment for the Benefit of Creditors
An ABC is a business liquidation device available to insolvent debtors. In effect, it is a contractual agreement under which a company’s assets are transferred in trust to an assignee, who is a fiduciary to the company’s creditors. It is one method of liquidating a business without putting the debtor at odds with his or her creditors.
In practical terms, choosing to engage in an ABC can allow a company’s owners, management, and directors to move forward with day-to-day business and transfer the complexities of closing out their company to the third party assignee.
CMBG Advisors’ team of seasoned professionals is highly experienced in all facets of ABCs, having served as assignee for numerous companies.