With Delaware’s recent adoption of the ABC Act, Assignments for the Benefit of Creditors (ABCs) are drawing increased attention as an alternative to traditional bankruptcy proceedings. For credit professionals, understanding when and why a distressed company may choose an ABC is becoming increasingly important.
This session will examine how the ABC process works, when it may be preferred over a Chapter 7 or Chapter 11 bankruptcy, and what the process means for unsecured trade creditors. We’ll explore the potential advantages and risks, including creditor rights, transparency, asset sales, claim treatment, and recoveries, while highlighting the key differences between an ABC and a traditional bankruptcy proceeding.
Attendees will leave with a practical understanding of what to watch for when a customer enters an ABC, how creditor rights may differ from bankruptcy, and the steps credit professionals should consider taking to protect their company’s interests when an ABC becomes the chosen path for a distressed customer.
Speakers:
Bradford J. Sandler, Managing Partner, Pachulski Stang Ziehl & Jones
Rob Saunders, Pachulski Stang Ziehl & Jones