Bankruptcy Filing Trends and American Apparel: David Kupetz Quoted in Series of Daily Journal Articles
David Kupetz was featured in a series...
Furniture Retailer
Assignments for the Benefit of Creditors
This company’s operations were severely, negatively impacted by a steep decline in the retail sector as a recessionary period deepened. A sale process was run and it was determined that there was no interested buyer for the business other than one of its existing principals. The company’s lender was on board to finance the principal’s acquisition of the business. There was significant unsecured debt, however, that would be left unpaid. Accordingly, in order to facilitate a sale to the insider, which was the best available transaction under the circumstances, an ABC was commenced. A prepackaged sale of the company’s assets was immediately accomplished. The company’s operations continued without interruption. Creditors were provided with a greater recovery than if the business had been forced to shut down.