The Dragich Law Firm Concludes Successful Representation in Michigan Assignment for the Benefit of Creditors
The Dragich Law Firm recently concluded its representation of Gene Kohut of Conway MacKenzie, Inc., in his role as assignee for the benefit of creditors. The underlying assignment for the benefit of creditors (“ABC”) proceeding involved the assets of AT Group US, LLC, Ann Arbor Distribution, Inc., and certain other affiliates.
An ABC is an insolvency proceeding governed by state law rather than federal bankruptcy law. In some states, the right to pursue an ABC is rooted in the common law, in others it’s governed by statute. In Michigan, MCL § 600.5201 sets forth the procedural requirements for a company making, and an assignee accepting, an assignment for the benefit of creditors.
Generally speaking, in an ABC, a company (the assignor), transfers all of its rights, title, and interest in its assets to an independent fiduciary (the assignee). The assignee then liquidates the assets and distributes the net proceeds to the company’s creditors.
In this case, which was initiated in the Circuit Court for the County of Washtenaw, Michigan, our firm worked closely with the assignee to complete all tasks required to wind-down the assignors, including:
- Liquidation of all assets, including rolling stock and other vehicles
- Distribution to creditors
- Dissolution of all entities, including filing final tax returns, wind down of 401(k) plans and other wind-down activities
Assignments for the benefit of creditors, as well as state and federal court receiverships, are increasingly popular and effective alternatives to Chapter 11 bankruptcy. The Dragich Law Firm has extensive experience representing fiduciaries in such proceedings in Michigan and across the country. If you would like to learn more about our services, please contact David Dragich at firstname.lastname@example.org or Amanda Vintevoghel at email@example.com.