Assignee in an Assignment for Benefit of Creditors (ABC)
MCA Financial served as the Assignee in an Assignment for Benefit of Creditors (ABC) to a national company headquartered in California and generating annual revenue in excess of $80MM.
The ABC was initiated by the insolvent company, which sought a faster, less expensive, and more flexible liquidation mechanism than formal bankruptcy proceedings. The company selected MCA due to MCA’s strong expertise in executing distressed sales and its ability to cut through the noise that normally accompanies such deals.
MCA stepped in to run operations and manage a fast, but complex, business sale process. MCA produced a 13-week ABC budget with approval from the secured lender, which was essential to operating and strategically marketing the company to interested buyers. MCA identified key transition obstacles and generated practical solutions in order to avoid delays. Its team of experts ensured all parties adhered to the agreed upon plan and timeline. The smooth transition of merchant accounts, vendor relationships, employees, and employee benefits was carried out.
MCA’s role in the Assignee for Benefit of Creditors led to the successful and well-organized going concern sale of the distressed entity in less than 30 days, significantly benefiting the employees, who were in large part retained by the buyer, and the secured creditor.