Baird Holm Associate Mike T. Franken Authors Nebraska Banker Article, “Nebraska’s New Assignment for Benefit of Creditors Act”

Nebraska is the first state to adopt the Uniform Assignment for Benefit of Creditors Act. What does that mean for creditors, lenders, and businesses?

Unlike traditional bankruptcy proceedings, Assignment for Benefit of Creditors (ABC) proceedings are voluntary, are not governed by the federal Bankruptcy Code, and can provide a faster, more flexible method for liquidating a distressed business’s assets for the benefit of creditors.

In the latest issue of Nebraska Banker, Baird Holm associate Mike Franken explains how Nebraska’s new law works, how ABC proceedings differ from bankruptcy, and what creditors need to know as this new process becomes available under Nebraska law.

For a more in-depth analysis of ABC proceedings and the implications of Nebraska’s new law for creditors, lenders, and businesses, read the article, “Nebraska’s New Assignment for Benefit of Creditors Act” here.