The ABC is an Alternative to Bankruptcy

Farlega Partners, LLC is one of the leading firms in the United States that is called upon when a company decides it needs to make an Assignment for the Benefit of Creditors (ABC). We have been the assignee for both private and public companies and our team understands the complexities and an Assignment and that it takes much more than just signing a contract with an Assignor. It takes a comprehensive strategic plan, to properly monetize the assets for the benefit of creditors.

The last thing any manager, investor or board member wants is to revisit this situation months or years later. Farlega has been able to fully monetize the assets of the company due to our deep relationship with corporate (both national and international buyers) and as the creators of the "Operating ABC".
Farlega developed these unique techniques to fully monetize assets for the benefit of creditors.

The benefits of an ABC are numerous. The debtor company selects the Assignee. Once Farlega Partners, LLC becomes the assignee, we take control and work through the problems of the company. These problems are transferred to the Assignee. The management team, investors and the board can then move forward with their lives and everyday business. Also, the personal liability of directors and officers for running an insolvent company ceases to be an issue once the assignment of assets occurs.

The Benefits of an Assignment for the Benefit of Creditors (ABC) include:

• The Assignee is selected by the company and is not court appointed;
• There is usually less notoriety than with a bankruptcy;
• The Assingment for the Benefit of Creditors (ABCs) is cost effective;
• The process is less formal, with few or no court hearings;
• The ability to move with speed (this can be very important in preserving the value of the assets);
• Flexibility to permit smart business choices;
• Usually provides closure and finality to the company, its board and its management;
• Asset sales can occur quickly, allowing for a higher price under such circumstances;
• A third party can acquire title to the assets in a purchase transaction;
• Intellectual property may sometimes be transferred to another entity;
• Limited operations can be continued to maximize the remaining value in company;
• Contractual obligations can be negotiated and resolved efficiently;
• If a press announcement is required, it can be simple and positive, (i.e. “Assets of Widgets, Inc. have been acquired by XYZ Company”.

The Assignment for the Benefit of Creditors (ABCs) process: