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Assignment for the Benefit of Creditors

  • Your company (Assignor) enters into a contract whereby it transfers all rights, titles, interests, custody and control of all assets to an independent third-party trustee (Assignee);
  • Assignee acts as a fiduciary for the creditors by liquidating all assets and then distributing the proceeds to the creditors;
  • Secured creditors are paid from proceeds derived from their security, relieving them of the legal costs and burden of foreclosing and selling their collateral;
  • In this process, the unsecured creditors cannot follow the assets that are sold;
  • A formal claims process is established for unsecured creditors, thus allowing the assignee to limit and control ongoing liabilities of the company;
  • Assignee is able to review, control, clean-up and work toward closure to the corporate situation before and during the sale of assets.

Doing it Right Takes More than Just Signing a Contract with the Assignee…It Takes a Strategic Plan

Since 1999, Farlega Partners, LLC has been the Assignee to over 450 Assignments for the Benefit of Creditors (ABCs). Some Assignees try to walk the walk, but what they really do is collect boxes of data and try to make the claim that they have successfully monetized the assets of the company. Farlega is known and considered the premier Assignee in the United States.

In today's complex world the "Operating Assignment for the Benefit of Creditors (ABCs)" is a very useful method to work towards a graceful exit or purchase of assets. If IP (Intellectual property) is involved, this is almost impossible to just collect boxes and wait for the call to properly monetize these assets. Historically, Farlega has monetized IP higher than any assignee. It is because of how we do an Assignment for the Benefit of Creditors (ABCs) and our relationships. Financial institutions have called upon Farlega as the Assignee to better monetize certain assets and collect the receivables through the "Operating ABC".

Farlega is also successful in avoiding the Assignment for the Benefit of Creditors (ABCs) process and implement a corporate restructuring for a situation that the management team or investors felt was hopeless. We have excellent relationships with most of the financial and legal institutions throughout the United States.

Contact Farlega Partners to discuss how we can help.


That’s we’re writing about

We know the industry and the industry knows Farlega. Farlega provides business consulting, financial management, human resources consulting and services for buying and selling of Timeshare for companies such as yours.
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