In Two Sides to Every Story: The Holistic View of ABCs, David Johnson examines why Assignments for the Benefit of Creditors (ABCs) have become an increasingly important—and often misunderstood—tool for boards, lenders, and investors navigating distressed situations.

Drawing on decades of hands-on experience, the article challenges the assumption that federal bankruptcy is the default or best path when a company reaches the end of its lifecycle. For many IP-focused, venture-backed, and lower middle-market businesses, traditional bankruptcy can be slow, expensive, and value-destructive. ABCs, by contrast, offer a streamlined, business-oriented alternative that prioritizes speed, discretion, and value preservation.

The article explores ABCs from both sides of the transaction. From the board’s perspective, ABCs can provide a faster exit, reduced fiduciary risk, and a practical way to delegate complex wind-down responsibilities to an experienced fiduciary. From the buyer’s perspective, ABCs can unlock attractive acquisition opportunities—often with fewer bidders, lower pricing, and the ability to preserve valuable assets such as intellectual property, customer relationships, and operating continuity.

Importantly, the piece does not present ABCs as a universal solution. It outlines situations where ABCs may not be appropriate, including complex regulatory environments, environmental exposure, or unresolved litigation, and emphasizes the importance of jurisdiction, creditor consent, and advance planning. Throughout, the message is clear: outcomes depend not just on the tool selected, but on how well it is executed and by whom.

Ultimately, the article reframes ABCs not as a last resort, but as a strategic option that—when used thoughtfully—can maximize recoveries, preserve value, and create better outcomes for all stakeholders involved.