The Assignment for the Benefit of Creditors (ABC) is an insolvency procedure governed by state law rather than federal law, and it can be a cost-effective and time-saving alternative to bankruptcy in selected situations.

The purpose of an ABC is to facilitate an organized liquidation of assets and an equitable distribution of proceeds to creditors—and GlassRatner is uniquely qualified to assess the viability of an ABC and execute the plan.

When considering the ABC option, GlassRatner will work with the debtor’s counsel to conduct an initial feasibility assessment. If the ABC solution is financially feasible—and there are no other circumstances that require the protections provided by bankruptcy law—GlassRatner will act as the assignee. We will organize the liquidation of assets (or sale of the business) and ultimately coordinate distributions to those creditors with valid claims.

All asset liquidations are managed directly by our team of professionals. We are experienced in all areas of corporate and real estate liquidations, so the ABC represents an efficient solution for our clients.

In the right situation, the Assignment for the Benefit of Creditors can be the perfect tool for achieving the maximum recovery, controlling liquidation expenses and making a timely distribution to creditors.