Side 1:  Disposition of Insolvent Investments

• An Assignment for the Benefit of Creditors (“ABC”) is a formal insolvency process as an alternative to a federal bankruptcy filing.
• The distressed company chooses its own “trustee” who has two primary mandates:
  1. Monetize any and all assets, and hold the proceeds in trust for distribution to creditors in the future.
  2. Conduct the administrative wind down of the company.
• Board members can resign immediately knowing that key employee, tax and investor concerns will be handled.
• Experience has demonstrated that the recovery for creditors is usually much greater in ABC’s, and administrative expenses tend to be lower, when compared with the average bankruptcy.