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Delaware’s New ABC Act: A Powerful Tool For Distressed Companies (Video)
Delaware has become the sixth state to adopt the Uniform Assignment for Benefit of Creditors Act, creating a more streamlined framework for distressed companies. This new legislation offers an alternative to Chapter 11 bankruptcy for Delaware-organized companies lacking liquidity, featuring assignee independence, structured claims administration, and Court of Chancery oversight. The Act's implications are significant given that over 60% of publicly traded U.S. companies are organized in Delaware.
Lowenstein Sandler