A growing number of restructurings are administered through receiverships or assignments for benefit of creditors (ABCs). This reflects state-level as well as the Uniform Law Commission’s efforts through the Uniform Commercial Real Estate Receivership Act (Commercial Real Estate Receivership Act – Uniform Law Commission) and the more recent Uniform Assignment for Benefit of Creditors Act (Assignment for Benefit of Creditors Act – Uniform Law Commission) to modernize receivership and ABC statutes. This work has culminated in many states in the Upper Midwest adopting new receivership and ABC statutes over the last decade. The increased use of these state court alternatives is also a response to the challenges of Chapter 11 or Chapter 7 bankruptcy cases, including sunsetting of the increased debt limit for Subchapter V Chapter 11s.
Given the continued trend in using receiverships and ABCs, it is important to monitor the status of state-laws governing receiverships and ABCs. The Chart below summarizes the primary existing statutory authority for receiverships and ABCs in Minnesota, North Dakota, South Dakota, Wisconsin and Iowa.
ShareholderRyan is recognized as a leading restructuring lawyer in the upper Midwest and has led many complex restructurings on behalf of companies and individuals to success. He formerly served as chair of Fredrikson’s Bankruptcy ...