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Assignment for the Benefit of Creditors

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.

Representative Cases:

Counsel to Assignors in assignment for the benefit of creditors of JugoFresh Holdings LLC and its subsidiaries, CBMIA Restaurant LLC d/b/a Coco Bambu, Aicon Yachts, Inc., TAG Company US, LLC, Gulfcoast International Products, Inc., Prodecom International Corp; Green Bullion Financial Services, LLC; Sobe LX, Inc.; Sanare LLC; and many others.

General counsel to Assignees in assignment for the benefit of creditors of Ginnybakes LLC, NNN Realty Investors, LLC, Yaz Perfumes, Inc.; School Box, Etc.; Royal Headwear & Embroidery, Inc.; Global Yachts International, Inc.; Venus Street, LLC, OutSource World LLC, Mirrors Crafters Custom Beveling, Inc., DSL Internet Corporation, B.O.L. Realty, Inc., Yarkon Holding Realty, LLC, Infinity Cargo Services, Inc., RevDia Corp., f/k/a Geneex, Inc., Dixie Bedding Corp., Majestic Jet, Inc. also d/b/a Nash Air Operations, LLC, OM Shanti Clothing Company, HAHA, Inc. d/b/a Jaavan Patio Furniture; Planettraks, Inc.; Shear Construction & Development, Inc.; Open Sports Network, Inc.; Viander USA, Inc.; Fred McGilvray, Inc.; Beacon Industries Worldwide, Inc.; Sun Surveys, LLC, The Electric Beverage Company and many others.

Special litigation counsel to Assignee of Recovery Associates of the Palm Beaches, Inc., a failed in-patient and out-patient drug rehabilitation center, asserting claims against the former directors and officers which resulted in a recovery of $285,000 for creditors.

Special litigation counsel to Assignee of Saco Trading, LLC, retained to investigate and prosecute breach of fiduciary duty claims against the former directors and officers.

Special litigation counsel to Assignee of CareSync, Inc., retained to investigate and prosecute breach of fiduciary duty claims against the former directors and officers.

Corporate purchaser of intellectual property of Tasco Worldwide Inc., designer and manufacturer of binoculars and telescopes, from assignment for the benefit of creditors.

Corporate purchaser of operating business from assignment for the benefit of creditors of Fantasi International Corp., designer and manufacturer of high end athletic apparel.

Corporate purchaser of the following: intellectual property, stock/partnership/membership and other legal, equitable and beneficial interest in foreign certain subsidiary entities, and claims, demands and causes of action from Domital Corp., business specialized in systems integration, consulting, outsourcing products an equipment installation services for wireless networks.