What is an Assignment for the Benefit of Creditors?
An assignment for the benefit of creditors (also known as an “ABC”) is a formal, voluntary transfer of a business and its assets to a private fiduciary—an Assignee—under the framework …
Is this a bankruptcy case?
No. An assignment for the benefit of creditors is a statutory procedure authorized and prescribed by Chapter 727 of the Florida Statutes. It allows a business to transfer all of …
Who is the Assignee?
The Assignee is Soneet Kapila, an accounting and insolvency professional who has experience serving in several fiduciary capacities, including as bankruptcy trustee, receiver, liquidating trustee, and as assignee in other …
What are the qualifications for the Assignee?
The assignee must be a neutral party free from conflicts of interest. He or she must be bonded in an amount determined by the assignment court. He or she must …
Who does the Assignee work for?
The Assignee works as a fiduciary of the assignment estate, and has fiduciary duties to estate creditors.
Will the Assignee pursue litigation claims, including fraudulent transfers claims?
The Assignee has the right to pursue these actions to the extent allowed by Florida law. Further, Chapter 727 provides that one of the Assignee’s duties is to prosecute any …
What happens to the assignor company?
Once an assignment for the benefit of creditors agreement is executed and delivered, the company is divested of its assets and the assignee takes on ownership and control of all …