Law360, New York ( January 27, 2016, 10:46 AM EST) -- Often, parties look to nonbankruptcy remedies such as state law assignments for the benefit of creditors (ABCs) or receivers under state or federal law to deal with distressed companies. In some cases, assignees and receivers may believe that filing bankruptcy would be the best option for a troubled entity. However, they may not be empowered to do so. The case law throughout the country is mixed regarding whether an assignee or receiver may file bankruptcy for the entity over which it is appointed, including whether the appointment of a receiver or assignee removes the debtor's board of directors or general partners' ability to file a bankruptcy petition. The cases that uphold a receiver or assignee's right to file bankruptcy are most often those where the court overseeing the matter specifically authorizes such a filing. In the absence of such specific authority, bankruptcy courts appear less willing to allow such petitions....