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Assignments for
the benefit of creditors


A quicker, cheaper alternative to bankruptcy for companies at the end of their cash runway.

G2 has considerable experience serving as the Assignee (e.g., trustee) in assignments for the benefit of creditors. An “ABC” is an alternative to bankruptcy popular with emerging growth and later stage companies alike. In many states, the process happens entirely out of court, making it a far quicker and cheaper option than bankruptcy.

Every situation is different. G2 can dialogue with you on several key questions, including:

  • Is an ABC a better solution for your situation than a managed wind-down, bankruptcy filing, foreclosure, receivership, financial restructuring, or installing a turnaround advisor?
  • If an ABC, should the company continue operating or cease doing business?
  • What does an ABC cost?

G2 leverages its unparalleled sell-side M&A capability and deep industry knowledge to maximize recovery for creditors.

Ranging from venture-backed, high-growth software companies to established brick-and-mortar businesses, G2 leverages its unparalleled sell-side M&A capability and deep industry knowledge to maximize recovery for creditors.
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Here’s how it works:


The distressed company transfers ownership of its assets to a third-party fiduciary—the "Assignee"—who then sells the assets (often on a turnkey basis—with business operations intact) in an accelerated timeframe, returns proceeds to creditors, and handles the corporate wind-down. The board and officers walk away day one—G2’s Assignee team can "take it from here."

PRE-ABC:


  • G2 assesses company’s cash position, business prospects, and available solutions
  • If board opts for an ABC, G2 develops a plan with timeline and budget
  • Board and shareholders consent to the ABC, and lender consents to sale of assets

ABC Day 1:


  • Company and G2 (as Assignee) execute general assignment agreement
  • Board and officers resign
  • Assignee assumes responsibility for handling all remaining matters
  • Assignee hires back key employees to assist with asset sale and wind-down tasks

Beyond Day 1, Assignee . . .


  • Runs IP and physical asset sale processes
  • Liquidates furniture, vacates office
  • Collects on customer A/R
  • Communicates with creditors and gathers proof of claim submissions
  • Deals with wide range of issues that may arise (e.g., hazmat, litigation, record storage, foreign subsidiary)
  • Handles administrative wind-down (i.e., 401(k) plan closure, tax return filings, jurisdiction withdrawal)

After 6 Month Mark:


  • Assignee analyzes creditor claims and distributes remaining funds

Recent Transactions*

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*Refers to G2 team members’ prior experience.

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