The Wind-Down That
Does Not Go to Court.
Valuation before the decision, execution after it. We work with boards, counsel, and assignees on ABCs nationwide, from the pre-assignment analysis that says whether an ABC is the right call to the final distribution to creditors. Assignee appointments are available through our affiliated advisors, depending on the matter and jurisdiction.
Discuss a MatterA State-Law Alternative
to Bankruptcy.
An assignment for the benefit of creditors, or ABC, is a state-law alternative to bankruptcy. A distressed company voluntarily transfers all of its assets to an independent fiduciary called the assignee, who liquidates them and distributes the proceeds to creditors according to a statutory priority scheme.
It is generally faster, cheaper, and more private than a Chapter 7, and the company's board chooses the assignee rather than having a trustee appointed by a court. ABC procedures are governed by state law and vary considerably. More than 30 states have codified the process and roughly 11 operate under common law, and several, including Delaware, Florida, Michigan, and Minnesota, involve court supervision.
What We Do
in an ABC.
Pre-Assignment Valuation
The decision to assign turns on what the assets will actually bring. Boards and counsel should compare an ABC against bankruptcy and receivership on recovery figures, not on assumptions.
- Full asset valuation across inventory, machinery, FF&E, real property, and intangibles
- Recovery comparison across ABC, Chapter 7, and receivership scenarios
- Timeline and cost modelling to support the board's decision
Wind-Down Execution
Once the assignment is signed, the assignee needs to be selling. We are built to move at that speed.
- Turnkey liquidation across all asset classes
- Going-out-of-business and controlled sale events run to a fixed calendar
- Site closure, lease surrender support, and asset removal
Creditor Reporting
The assignee answers to creditors, and the accounting has to hold up.
- Proceeds accounting through final distribution
- Creditor-facing reporting on sale results and recovery
- Documentation supporting the assignee's discharge
Assignee Appointments Through Affiliated Advisors
Where the matter calls for the fiduciary role itself, our affiliated advisors accept assignee appointments depending on the matter and jurisdiction, with Eaton Hudson executing the valuation and disposition.
- Assignee and related fiduciary appointments
- Coordination with company counsel through the assignment
- Single-team execution from pre-assignment valuation to final distribution
The Law Is Consolidating.
The Decision Is Still About Recovery.
ABC law has been fragmented for more than a century and is starting to consolidate. Delaware became the sixth state to adopt the Uniform Assignment for Benefit of Creditors Act in June 2026, replacing a statute written in 1875. For companies incorporated in Delaware, that change alone makes the ABC a more predictable option than it was a year ago.
What the statute does not decide is whether an ABC is the right choice. That turns on recovery. An ABC is faster and cheaper than a Chapter 7, but it offers no automatic stay, and if the assets are worth more in a supervised sale, the savings are false economy. The way to know is to value the estate before the decision is made, which is where we usually come in.
Eaton Hudson is not a law firm and does not provide legal advice. Nothing on this page is a solicitation to fund, purchase, or finance any legal claim.
Assignments for the Benefit
of Creditors — FAQ.
Know What the Estate Is Worth Before You Assign It.
Connect with our team to discuss pre-assignment valuation and wind-down execution.
Contact Our Team