Bankruptcy is not the only option for businesses facing insolvency. In Florida and many other states, companies can use the state’s Assignment for the Benefit of Creditors (ABC) statute to avoid a bankruptcy filing. For businesses needing liquidation, an ABC provides benefits over a bankruptcy filing, including greater flexibility in working with the Court-appointed fiduciary. An ABC is generally a faster and more cost efficient way to wind up the business’s affairs. We find that ABC’s often provide the best way to maximize the value of assets and address the particular needs of the liquidating business. Our lawyers are available to represent participants in an ABC proceeding, including:
- The Assignor – the company that will be liquidated
- The Assignee – the Court appointed fiduciary charged with securing and liquidating the assets for distribution to creditors
- Individuals or businesses who wish to purchase assets or the entire company
- Creditors who are seeking payment of debt through the ABC process
We will evaluate your specific circumstances, needs and goals and advise you whether an ABC makes sense in your case.