State Court Insolvency Proceedings

 

Maximizing success in state court proceedings

State court remedies often provide a more efficient alternative to bankruptcy. Assignments for the Benefits of Creditors (ABCs) or state court receiverships are often the best alternative to maximize recovery and monetize assets resulting in greater recoveries for creditors.

SM Law is one of the leading law firms specializing in state court insolvency matters. We have served as Assignee for the Benefit of Creditors in numerous proceedings, serving as fiduciary to oversee the efficient and effective wind-down of corporations and business entities.

Additionally, as a court appointed Receiver, SM Law is able to quickly take possession of a company’s assets and sell the assets in the most beneficial manner to maximize proceeds in order to pay creditors. We advise creditors on their legal rights and remedies to repossess assets, attach goods pre-judgment, and petition the Court for insolvent debtor corporations to be placed into statutory receivership in order to secure and preserve assets.  We have completed numerous receivership appointments, many for highly complex situations. Our in-depth expertise enabled us to satisfy creditors and at the same time ensure viable business operations, thereby balancing the needs of the many parties involved to reach equitable solutions.

 


 

Representative Matters:

  • Served as the Assignee for the Benefit of Creditors in the liquidation of a family-owned manufacturer of construction trusses. Millions of dollars were recovered and returned to creditors by liquidating the facility and commencing litigation to collect the accounts receivables and preferences.
  • Served as the Assignee for the Benefit of Creditors for H. K. Buzby, Inc. After a successful auction sale and individual market sales of the Assignor’s real estate assets and litigation to collect the outstanding accounts receivables and preferences, several million dollars were paid to the Secured Creditor.
  • Served as Assignee for the Benefit of Creditors for a chain of gas stations involving complex lease and assignment issues including negotiations with a series of landlords and the review of many bank transactions and agreements.
  •  Served as Assignee for a New York-based mental health care facility which required the liquidation of its real estate and other assets involving sales and abandonment issues.
  • Served as Assignee for a Delaware-based furniture retailer involving the liquidation of inventory and conclusion of the business in the Chancery Court.