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. The benefits of ABCs compared to Ch. 7 & 11 bankruptcies, receiverships, and other out-of-court restructuring methods include:
- Speed: Out-of-court ABCs can be completed faster than a bankruptcy or receivership matter.
- Flexibility: The Assignee can utilize restructuring methods at-will, such as negotiating with creditors or selling assets, to optimize outcomes.
- Cost: ABCs are far less expensive to implement than a bankruptcy due to efficiency and lower fees.
- Yield: The expediency and flexibility of ABCs typically result in greater net proceeds than other methods available.