An assignment for benefit of creditors (an “ABC”) under the common law is an out-of-court tool for liquidating a business debtor’s assets in an efficient and credible manner.
Such a common law tool has been used, effectively and frequently, for many years in such states as Illinois and California.
Despite the out-of-court nature of an ABC under the common law, courts can still be enlisted to resolve discrete issues that may arise. Here is an example of a court’s involvement, within an ABC under the common law, to resolve an issue of compensation for the ABC assignee:
Here’s a curious thing:
- an advisory opinion from a U.S. Circuit Court of Appeals on an issue for which there is no controversy and that is mostly academic.
That’s exactly what we have in In re Whittaker Clark & Daniels, Inc., Case Nos. 24-2210 & 24-2211 (3rd Cir., decided September 10, 2025)(see first concurring opinion).##
No Controversy
This article first appeared in Volume 22, Issue 6 of International Corporate Rescue.
Synopsis
It is a recurring practical issue in insolvency proceedings how the creditor may prove that an invoice was duly communicated to the debtor. In a recent decision, the Hungarian court examined if screenshots taken from an electronic invoicing system suffice to prove delivery and awareness of an invoice, in the absence of traditional postal proof. In our article we analyse the decision.
1. Facts of the case
Въведение
This article examines the recent decision in Maher & Anor v Investalet Ltd & Anor.
Section 234 Insolvency Act 1986 provides:
“(2) Where any person has in his possession or control any property, books, papers or records to which the company appears to be entitled, the court may require that person forthwith (or within such period as the court may direct) to pay, deliver, convey, surrender or transfer the property, books, papers or records to the office-holder.”