assignment for the benefit of creditors https://bankruptcy.cooley.com The Business Bankruptcy Blog Mon, 23 Mar 2020 14:58:51 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://bankruptcy.cooley.com/wp-content/uploads/2025/01/cropped-cropped-favicon-1-1-192x192-1-60x60.png assignment for the benefit of creditors https://bankruptcy.cooley.com 32 32 Fiduciary Duties And Financial Distress In The Time Of COVID-19 https://bankruptcy.cooley.com/2020/03/articles/fiduciary-duties-and-financial-distress-in-the-time-of-covid-19/ Mon, 23 Mar 2020 14:58:51 +0000 https://bankruptcy.cooley.com/?p=3898 The COVID-19 pandemic has caused unprecedented economic disruption, creating sudden financial distress across industries. Companies are now facing impacts ranging from a dramatic decline in revenue of uncertain duration, to potential setbacks to M&A transactions, to delayed or canceled financing rounds. With even some previously well-performing companies potentially entering the so-called zone…

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]]> The Venture-Backed Company Running Out Of Cash: Fiduciary Duties And Wind Down Options https://bankruptcy.cooley.com/2016/02/articles/the-venture-backed-company-running-out-of-cash-fiduciary-duties-and-wind-down-options/ Tue, 16 Feb 2016 16:37:42 +0000 http://bankruptcy.cooley.com/?p=3030 Many start-up companies backed by venture capital financing, especially those still in the development phase or which otherwise are not cash flow breakeven, at some point may face the prospect of running out of cash. Although many will timely close another round of financing, others may not. This post focuses on options available to companies when investors have decided not to fund and the company…

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]]> Section 363 Sales And Beyond: An M&A Lawyer’s Perspective On Purchasing Assets From Distressed Companies https://bankruptcy.cooley.com/2009/06/articles/section-363-sales-and-beyond-an-ma-lawyers-perspective-on-purchasing-assets-from-distressed-companies/ Mon, 22 Jun 2009 03:40:10 +0000 http://inthered.wp.lexblogs.com/2009/06/section-363-sales-and-beyond-an-ma-lawyers-perspective-on-purchasing-assets-from-distressed-companies/ With the economy suffering through the longest recession since the 1930s, it’s little wonder that much of the merger and acquisition ("M&A") activity these days has been focused on distressed companies. The Chrysler and General Motors cases may be the best-known examples, but Chapter 11 bankruptcy is frequently used by companies large and small to sell assets through Section 363 sales.

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]]> Latest Edition Of Bankruptcy Resource Now Available https://bankruptcy.cooley.com/2008/05/articles/latest-edition-of-bankruptcy-resource-now-available/ Tue, 20 May 2008 15:43:09 +0000 http://inthered.wp.lexblogs.com/2008/05/latest-edition-of-bankruptcy-resource-now-available/ The Spring 2008 edition of the Absolute Priority newsletter, published by the Cooley Godward Kronish LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter give updates on current developments in bankruptcies and workouts with the goal of keeping you "ahead of the curve" on these issues. Follow the links in this sentence to access a copy of the…

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]]> Assignments For The Benefit Of Creditors: Simple As ABC? https://bankruptcy.cooley.com/2008/03/articles/assignments-for-the-benefit-of-creditors-simple-as-abc/ Mon, 17 Mar 2008 03:38:12 +0000 http://inthered.wp.lexblogs.com/2008/03/assignments-for-the-benefit-of-creditors-simple-as-abc/ Companies in financial trouble are often forced to liquidate their assets to pay creditors. While a Chapter 11 bankruptcy sometimes makes the most sense, other times a Chapter 7 bankruptcy is required, and in still other situations a corporate dissolution may be best. This post examines another of the options, the assignment for the benefit of creditors, commonly known as an "ABC."

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