General Assignments Save Time And Money:

• The Assignment is among the most cost effective forms of selling and/or liquidating a business as there is no court supervision and no court approval required for an Assignment; thus no costly layers of administration and professional fees are significantly reduced.

• Sale of a business to a third party in an Assignment is effectuated quickly and cleanly unlike under the Bankruptcy Code where the court has the discretion to refuse a sale if there are insufficient funds to pay unsecured creditors a meaningful recovery.  The courts are no longer rubber stamping sales.  Bankruptcy sales generally require a minimum of two months time to attain the court’s approval of a sale by which time key employees and customers have left.

• The Assignee is exempt from the bulk sale laws and thus can sell corporate assets in as little as two (2) days after the execution of an Assignment.

• The Assignment is a contract in which the company chooses the Assignee as opposed to a Bankruptcy wherein the court chooses the liquidator/trustee who may have a different agenda and not be as understanding or cooperative.

• The Assignee has the ability to liquidate assets quickly preserving the going concern value, the goodwill, the personnel and the accounts receivable of the company.

• The Assignee many times is able to utilize the Assignor’s existing professionals such as accountants to complete the tax returns or their attorneys to pursue special litigation thereby preserving the estate assets by retaining professionals that are up to speed on the case and issues thus avoiding an expensive learning curve.

Assignees Like Bankruptcy Trustees Can Pursue Preferential Transfers and Fraudulent Conveyances:

• The Assignee has the duty and the ability to pursue preferential transfers and fraudulent conveyances including avoiding judgment liens and writs similar to a Bankruptcy trustee.

Notice Of The Liquidation Is Given To All Creditors:

• Assignments are required by law to provide notice to all creditors which provides closure and finality as to the company, its board and its management.

• Companies may execute an Assignment whether they are currently operating, have already ceased operations or are just a business plan; there is no minimum asset requirement.

Assignments Avoid Lender Liability:

• Secured Creditors insulate themselves from lender liability issues by allowing an independent third party (the Assignee) liquidate or sell the assets thus avoiding the tricky and problematic commercially reasonable sales procedures.  The speed and economic efficiently of a General Assignment tends to yield a higher recovery for creditors then would a corresponding Bankruptcy.

Assignments Are Exempt From SEC Reporting:

• In an Assignment, the officers, directors and mangers of the liquidating entity are exempt from reporting a liquidation effectuated by an Assignment on their biographies unlike a Bankruptcy proceeding which the SEC requires management of public companies disclose.