In some cases, a Managed Liquidation is another route to take when winding down a business operation. One such instance occurs in the few states where an Assignment For Benefit Of Creditors (ABC) is not accepted. Another instance is when assets exceed liabilities. A Managed Liquidation is appropriate when corporate operations are relatively straight-forward and the balance sheet is not overly burdened with complicated debt arrangements. If these situations occur, a Managed Liquidation may be more attractive than a formal bankruptcy filing.
Farlega goal is to simplify the process of liquidation and maximize the outcome for the creditors, investors and company owners. Often, when Farlega steps into a Managed Liquidation, we find that employees are tense and unpredictable, creditor relationships are strained, customers are uncertain and management is overwhelmed with critical issues every day. We can restore organization and calm to the chaos. By methodically and quickly tackling the key stress points and stabilizing the main assets in the company, Farlega professionals can provide an orderly process to wrapping up corporate operations and fully monetize the assets.
The concept of Managed Liquidations is similar to an Assignment for the Benefit of Creditors (ABCs), with the exception that it is not a legally outlined process. Therefore, there is not the same protection from creditors. However, in the proper circumstances these liquidations are the optimal solution.
Farlega services include some of the following:
The benefits of using a Managed Liquidation are similar to those of an Assignment for the Benefit of Creditors (ABC). In particular: