On April 4, Audio Research executed an agreement assigning their assets to a group that would distribute them to their creditors.
Whether that means they are effectively liquidated or something else remains to be seen, but regardless it’s a sad day for customers and the industry.
“Assignment for the benefit of the creditors (ABC)(also known as general assignment for the benefit of the creditors) is a voluntary alternative to formal bankruptcy proceedings that transfers all of the assets from a debtor to a trust for liquidating and distributing its assets. The trustee will manage the assets to pay off debt to creditors, and if any assets are left over, they will be transferred back to the debtor.”
Basically it’s a way of liquidating assets without the bad PR associated with declaring formal bankruptcy in case a buyer can be found.
The assignee is a company that specializes in turnaround of troubled businesses.
Lighthouse Management Group
Whether that means they are effectively liquidated or something else remains to be seen, but regardless it’s a sad day for customers and the industry.
“Assignment for the benefit of the creditors (ABC)(also known as general assignment for the benefit of the creditors) is a voluntary alternative to formal bankruptcy proceedings that transfers all of the assets from a debtor to a trust for liquidating and distributing its assets. The trustee will manage the assets to pay off debt to creditors, and if any assets are left over, they will be transferred back to the debtor.”
Basically it’s a way of liquidating assets without the bad PR associated with declaring formal bankruptcy in case a buyer can be found.
The assignee is a company that specializes in turnaround of troubled businesses.
Lighthouse Management Group
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