ABC – ASSIGNMENT FOR THE BENEFIT OF CREDITORS

An ABC with Stapleton Group as assignee may be the most prudent fiduciary action by a distressed company’s board of directors. ABCs involve assigning the business assets to an assignee who operates the company while selling it as a going-concern in a competitive process. An ABC can be faster and yield greater proceeds than a receivership, bankruptcy, or other out-of-court restructuring process.

Results

ABC of Multi-Channel Retailer

As Assignee in the ABC of a multi-channel, direct-to-consumer retailer, Stapleton Group improved creditors’ recovery from zero to $2.5MM+ by designing and implementing the competitive sale of business assets and substantially reducing vendor claims.

Financial Advisor to Bank Regarding Insolvent Food Wholesaler

Stapleton Group helped achieve the 100% recovery of a bank’s $33.5 million loan to an insolvent national food wholesaler that had entered an ABC.

ABC of Illiquid Aviation Business

As Assignee in the ABC of an illiquid aviation maintenance, repair and operations business facing HazMat-based liabilities, Stapleton Group achieved a recovery for the secured creditors.