The use of the legal tool known as an “assignment for the benefit of creditors” (“ABC”) has been growing rapidly over the past decade. So much so, that the Uniform Law Commission recently formed a committee to study the need for, and feasibility of, a uniform or model act on the subject. ABCs are often favored by debtors and creditors (and their respective advisors) for a variety of reasons, with one of the most significant being the flexibility the process offers by empowering an assignee to sell subject assets at the highest practical price at a cost that is typically far less than in a chapter 11 bankruptcy. With power, though, comes responsibility and one of the core responsibilities of an assignee is to deal openly and honestly with creditors. In order to do this, it is critical that the assignee’s identity and contact information be communicated to them. Or is it? Read Jonathan Friedland’s, Assignee Unknown: The Curious Cases of SmartLabs, Shine Bathroom Technologies, Liftopia, GlassPoint, SolarReserve, Maker Media, & Toymail to find out.
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