Assignment for the Benefit of Creditors
When we serve as the Assignee in an Assignments for the Benefit of Creditors (ABCs), Force 10 takes on the problems and risks for an insolvent business. We sell the assets and wind down the company’s affairs, protecting creditors’ interests while keeping them informed.
ABCs are based on state law, not the federal bankruptcy code, and vary by state. Where laws favor out-of-court dissolutions, an ABC with a fiduciary as the assignee, works well for closely-held entities with secured or unsecured debt. The process resembles a Chapter 7 bankruptcy without court oversight.
In this role, we…
Subject all buyers put forth by insolvent companies to an overbid process, to ensure the best outcome for creditors.
Manage dealings with various state and local taxing authorities, and the IRS, as well as vendors with claims.
Liquidate and distribute net proceeds to maximize recovery for creditors.
Act as an objective fiduciary throughout what is often a contentious process.
Ready to act
Having pioneered solutions in so many novel situations, we can take control quickly, with little ramp-up time needed.
We insist on integrity. Our like-minded team’s sense of professional ownership carries through in each engagement, motivating us to do the right thing, and do it well.
Buyers are welcome
To secure the best result, we tap into our vast network of potential asset buyers, working our relationships and market insights.
A proven ability to identify productive solutions in challenging situations and offer value-creating strategic advice to firms across a wide range of industries.