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Assignment for Benefit of Creditors (ABC): A proven business termination path for insolvent companies

Assignment for Benefit of Creditors (ABC): A proven business termination path for insolvent companies


An ABC is an established, state-sanctioned methodology and process for liquidating a company that is insolvent without undergoing the delays, costs, and constraints of bankruptcy. Companies electing an ABC as the strategy for termination select an Assignee and enter into an agreement whereby the Assignee assumes control over the company’s assets and liabilities, and then executes a complete liquidation by selling assets and satisfying creditors.

Armanino is expert at acting as the Assignee in an ABC. Management and investors are relieved of the cost and liability of liquidating the company themselves and results are typically achieved in less time than through a formal bankruptcy petition.