Learn More about the "ABCs" of Assignments for the Benefit of Creditors.
© High Ridge Partners, LLC 2012 (HRP5.8)
The principals of High Ridge Partners have a long history serving in a fiduciary capacity. A fiduciary relationship is based on the ideas of faith and confidence. Our reputation for integrity, loyalty and exercising care are well known.
Serving as a Trustee
We often act in a fiduciary capacity as a liquidating trustee preserving value, disposing of assets and administering proofs of claims under a chapter 11 liquidating plan, in a chapter 7 case or when a chapter 11 case is converted to a case under chapter 7. These services are very similar to those we provide when we act as an assignee-trustee for the benefit of creditors.
Assignments for the Benefit of Creditors
A business that is unable to pay or otherwise resolve its debts in the ordinary course of operations and faces closing its doors may turn to a simple and cost-effective alternative to bankruptcy – an assignment for the benefit of creditors. An ABC results in larger, and quicker, recovery for creditors. In most states it does not even require the intervention of a court.
One of the more significant advantages of an ABC is that the principals of the business may select the assignee entrusted to liquidate the company and pay creditors.
High Ridge Partners has served as the assignee in ABCs for virtually hundreds of businesses of varying sizes and across a wide range of industries. We have consistently achieved favorable returns for creditors while avoiding the time-consuming and expensive costs of a bankruptcy case. We are sensitive to the unique needs of each stakeholder in a failing business.
Serving as a Receiver
Lenders are increasingly seeking the appointment of receivers as an alternate to bankruptcy for managing their collateral. Receiverships offer a lender the opportunity to appoint a court empowered neutral party to receive, preserve and/or liquidate its collateral, pending the court's resolution of secured creditors' claims. High Ridge Partners and its principals have acted in the capacity of receiver in numerous engagements.
We have managed numerous receivership appointments for a wide spectrum of properties and businesses throughout the country. In real estate matters, we have managed the completion of various large complex projects to enhance the value of the collateral. For income producing properties, we have overseen the management of the property and collection of the rents. For operating businesses, our professionals are qualified to manage the operations and serve as custodians.
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