ASSIGNMENT FOR THE BENEFIT OF CREDITORS
Unlike bankruptcy, ABCs offer a nonjudicial, nonpublic way to shut down an insolvent company. All assets--from Aeron chairs to laptops--are sold off, and creditors are often paid pennies on the dollar.
Troubled companies look to Marty to clean up their balance sheets with an eye toward long-term survival. The service can include renegotiating leases, laying off workers, and selling unneeded assets.
The method of choice for promising startups that need to wait out the downturn. The businesses are virtually closed, and a handful of employees remain to develop technology.