MCA Financial Group was retained by Monroe Capital, a secured lender, to act as the Assignee for the Benefit of Creditors (“ABC”) and oversee the dissolution of a data protection and storage software company operating internationally across approximately 150 countries. The client engaged MCA to manage the wind-down of the legacy entities following foreclosure by the secured creditor, ensuring a structured process for creditor recovery and compliance with California ABC regulations. With revenues of approximately $110 million and a workforce of 500–1,000 employees, the engagement required meticulous attention to financial, operational, and legal considerations to protect the interests of stakeholders.
MCA’s role encompassed complete ABC administration and liquidation services, including a thorough review and evaluation of receivables, recovery opportunities, and ongoing obligations. The team coordinated closely with the buyer’s representatives under the terms of a UCC Article 9 sale and the Asset Purchase Agreement (APA), which transferred select assets and liabilities while excluding contracts, litigation matters, leases, and other obligations from the legacy entities’ estate. MCA managed creditor communications, maintaining contact with roughly 200 parties, closed accounts with relevant tax authorities, and led efforts to de-escalate potential litigation.
A significant challenge arose from data limitations, as many high-level and executive employees had departed under unfavorable circumstances and were initially unwilling to cooperate. Through persistent outreach and targeted engagement, MCA successfully identified the appropriate contacts and obtained critical information necessary to complete the wind-down efficiently and in full compliance with regulatory obligations.
The engagement demanded a combination of technical expertise and strategic judgment. MCA leveraged deep knowledge of corporate formalities, tax authority compliance, and structured creditor communications, while applying disciplined project management to navigate complex legal and operational issues. Collaboration with the buyer’s team was crucial to ensuring a proper asset transition and continuity of operations, where necessary, while minimizing disruptions to creditors and other stakeholders.
Despite the complexity of the assignment and the large number of creditors involved, the engagement achieved its objectives. MCA successfully managed the dissolution of all entities under the ABC, preserving value for creditors and mitigating potential disputes or litigation exposure. Verbal recognition from the client highlighted the team’s effectiveness in de-escalating legal matters and maintaining transparency throughout the process.
This engagement demonstrates MCA Financial Group’s ability to deliver comprehensive ABC and corporate dissolution services in complex, high-stakes environments. The firm’s combination of operational rigor, financial acumen, and strategic communication ensured a disciplined and effective outcome, reflecting MCA’s commitment to protecting stakeholder interests while navigating sensitive and multifaceted engagements.
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