General Assignment

We offer a team of experts to analyze the details of each unique situation and develop a deal structure based on sound business and legal principles.

What Is General Assignment?

Whether the distressed business is a corporation, a limited liability company, a partnership, an institutional lender faced with troubled credit, or a venture capital firm with a distressed portfolio company, one solution is a general assignment, or Assignment for Benefit of Creditors (ABC). An ABC is a nonjudicial liquidation process that tends to be far less costly and time-consuming than bankruptcy. 

A general assignment is preferred by secured creditors, as it reduces their own legal costs as well as the risks related to asset sale and foreclosure. In bankruptcy, there are a number of traps for the unwary, but in a general assignment – given Insolvency Services Group’s (ISG) unique, in-house legal expertise – the distressed company is better able to steer around hidden obstacles.

We specialize in tailoring this process to meet the needs of the distressed company, consistent with the legal rights of and duties to creditors.

We assess and confer with the distressed company and its management to determine whether a general assignment is the appropriate tool.

We offer a team of experts to analyze the details of each unique situation and develop a deal structure based on sound business and legal principles which will withstand scrutiny.

Advantages of General Assignment

Simplicity

In California, there is no court involved in the commencement of general assignments – it is an out-of-court contractual device. The laws of assignments in other states vary, and ISG can assist companies in determining the applicable requirements for commencing and pursuing a general assignment for companies located outside of California.

No California court oversees general assignments, so there is no formal court approval for the disposition of assets. That means greater flexibility and less delay in selling and disposing of assets, with a greater net recovery to creditors and other parties in interest. In turn, the resolution is faster and the overall expense is lower.

The option of selecting a reputable assignee is critical. Unlike bankruptcy, distressed companies have the ability to choose a well-recognized and respected assignee who is able to better drive the process to a successful conclusion and defend an involuntary bankruptcy petition, should creditors seek to challenge the general assignment.

General Assignment Through ISG

A team of experts to analyze the details of each situation

Industry-specific experience backed by decades of success

Specialization from both a business and legal standpoint

Maximize your recovery

and protect your integrity in the industry