6. What steps are necessary to the making of an Assignment for the Benefit of Creditors?
Before a General Assignment is accepted, Equitable Transitions conducts a thorough due diligence of the prospective assignor so that all contingencies and/or potential difficulties and problems can be identified and resolved
The Terms of the General Assignment agreement must be agreed and the contract is prepared
A listing of the names, addresses and amounts owed to creditors must be verified by an officer of the Assignor
The entity making the General Assignment must, by appropriate entity action (such as a resolution of the board or a meeting of the partners/members), must authorize an officer to make the General Assignment
When a secured creditor is involved and a piecemeal liquidation is contemplated, the consent of the secured creditor may be required. This often involves the preparation of a budget for the liquidation process and an agreement with the secured creditor to use the proceeds of its collateral to accomplish the piecemeal liquidation.
