Receiverships and Assignments
Annesser Armenteros brings a wealth of not only legal-based knowledge, but also financial and management skills that allow us to serve as, and represent receivers. Partner Brian Chaiken, who holds an accounting degree and passed the CPA examination, has served as the CFO of a publicly-traded company, and was responsible for the preparation and filing of budgets, financial statements, and related documents.
This experience translates well to assist in court cases, where a court has appointed a receiver to take control of a party’s assets in order to manage and preserve the assets’ value until the litigation is concluded. A receiver may abandon property and liquidate all or part of a debtor’s assets, depending on the authority granted by the court. Whether serving as the court-appointed receiver, or as attorneys for the receiver, we know how to manage large and complex cases and understand how to maximize value for creditors.
We also have a broad range of knowledge regarding assignments for the benefit of creditors, commonly known as ABC cases. An ABC case is an insolvency proceeding governed by state law rather than federal bankruptcy law. While a bankruptcy may be an option for some financially distressed companies, others may opt for an ABC as an alternative method to liquidate all or part of its assets. In an ABC, all or part of the debtor’s assets are assigned to an assignee appointed by the state court, whose duties and responsibilities to a debtor’s creditors are equivalent to those of a trustee to the beneficiaries of a trust. An ABC offers a level of flexibility that bankruptcy does not and can be a cost effective option, depending on the goals of the distressed company.