18. What happens to a principal who has guaranteed debt of the Assignor after the General Assignment is commenced?
The principal remains liable on the personal guarantee
However, in our experience the participation of a principal in the process of liquidation is very helpful because of their knowledge of the industry and the assets to be liquidated
Secured creditors often encourage the participation of principles in the liquidation process and offer incentives, such as forgiveness on guarantees in the event that assets are liquidated for pre-agreed values
