Examining Assignments For The Benefit Of Creditors

Law360, New York (May 1, 2013, 4:01 PM EDT) -- An assignment for the benefit of creditors (also known as a “general assignment” or “ABC”) involves the assignment of all of a company’s assets to a third-party assignee. The assignee, who holds legal and equitable title to the company’s assets in trust by virtue of the assignment, will then conduct a sale of such assets, the proceeds of which will be distributed to the company’s creditors pursuant to priorities established by reference to applicable state law.

ABCs are governed by state statutory or common law, rather...
To view the full article, register now.