Assignment for the
Benefit of Creditors (ABC)

A sound alternative to bankruptcy

In economic uncertainty, many corporate boards of directors conclude that turning around their distressed businesses is not feasible.

The Assignment for the Benefit of Creditors (ABC) is a state-law winddown process that allows for a cost effective and timely closure of the business. The ABC identifies and appoints an independent fiduciary representative, herein referred to as the Assignee. The Assignee manages the winddown of the business and monetizes the company’s assets for the benefit of the company’s creditors. The Assignee then distributes the proceeds generated from the sale of the company’s assets to the company’s creditors in accordance with state law.

MCA’s expertise in ABCs:

The professionals at MCA Financial Group understand the complexities of the effective administration of an Assignment, and understand an ABC takes much more than simply signing a contract between the Assignor (the Company) and the Assignee. Our team takes the appropriate time to acquire a deep understanding of each specific situation. We then develop a comprehensive strategic and tactical plan to properly and efficiently monetize the assets for the benefit of the creditors.

Our proven success in distressed business and asset sales ties back to our more than two decades of leading and managing distressed sales and is enhanced by our professional relationships with both financial and strategic buyers. Within our network, our team will make connections to identify the ‘right contact’, which is the key to a successful monetization process.