We consulted with a business that was forced to ultimately close due to an inability to pay its debts when they came due. Numerous creditors filed lawsuits and obtained judgments against the company. The company retained us to assist with a liquidation of its assets, so that the value to the creditors could be maximized and so that creditors’ claims could be liquidated in one venue.
We recommended that the company proceed with an Assignment for the Benefit of Creditors, which is a procedure for the administration of insolvent businesses that ensures full reporting to creditors and equal distribution of assets according to priorities established under Florida law. The Assignment for the Benefit of Creditors was filed and allowed the business to wind down. A court-appointed Assignee sold the assets of the business to a third party, and a maximum value was derived for the benefit of the company’s creditors.
