ABCs

When a business in financial distress lacks a clear path to recovery, an Assignment for the Benefit of Creditors (ABC) with Stapleton Group as assignee may be the best choice for the business’s creditors and shareholders. In an ABC, the business’s assets are sold for the highest possible values and the company is wound down in an orderly fashion. The process is faster and often yields greater proceeds than a Chapter 7 bankruptcy.

Retaining Stapleton to manage the ABC process is a prudent fiduciary action by the company’s board of directors. We bring years of experience serving as professional fiduciaries focused exclusively on liquidating assets and closing down businesses in an orderly way. In the process, we effectively bridge strained relationships between the business owners, management and creditors.

The ABCs of an ABC

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Our exceptional team of fiduciaries, financial consultants, accountants and support staff strives to exceed creditors’ expectations while, if possible, preserving jobs and shareholder opportunity.

Contact us to learn more about the benefits of ABCs and how we generate the best possible results for all parties involved.

ABC = A Better Choice

The custom cabinetry manufacturer had on-going cash flow problems and its creditors did not think its owners would achieve the highest valuation by selling so opted for an ABC. As assignee, we conducted a thorough liquidation analysis then sold the business as a going-concern, applying the proceeds to resolve all claims. We also negotiated with the buyer to fund final employee payroll and vacation time, and to retain the employees. Secured creditors were paid in full and unsecured creditors received 5% of claims.

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Poor Operations Resolved

The manufacturer faced IRS liens, overdue A/P, vendor disputes and pending eviction as a result of poor cash flow after years of bad management. As assignee in an ABC, we prepared a liquidation analysis; used industry connections to identify buyers; negotiated a payment plan with the IRS; sold the business; and, resolved all claims. The successful sale yielded a recovery 3-4x greater than would have been achieve in a Chapter 7, saved jobs and ensured completion of customers’ work in process.

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