What's an ABC? If you ask ChatGPT, “ABC” is an acronym that can have multiple meanings, depending on the context—for example, referring to the alphabet. But here we are talking about a type of business liquidation process in the United States known as an Assignment for the Benefit of Creditors (“ABC”). An ABC is governed by state law and has long been viewed as an alternative to a liquidation under Chapter 7 of the US Bankruptcy [...]
Abstract In restructuring contexts, particularly in relation to Restructuring Plan relevant alternatives and Scheme comparators, it is common to see discounts applied to valuation estimates derived on the basis of the conditions of an orderly sales process. These discounts are often material and consequently can have a significant impact on the valuation conclusions. It is therefore essential that the valuer is able to clearly articulate the circumstances of the sales process envisaged and how it [...]
Valuation is a critical and indispensable part of the bankruptcy process. How collateral and other estate assets (and even creditor claims) are valued determines a wide range of issues, from a secured creditor's right to adequate protection, postpetition interest, or relief from the automatic stay to a proposed chapter 11 plan's satisfaction of the "best interests" test or whether a "cramdown" plan can be confirmed despite the objections of dissenting creditors. Depending on the context, [...]