Assignment for the Benefit of Creditors

Assignee for multimillion dollar tech startup based in San Francisco, CA

Situation

Operating internationally across seven countries and reaching a valuation peak of $1B, the tech provider was a major player in the online payment processing space. Following significant market shifts and internal challenges, the company had to consider winding down operations.

Strategy

Financial and Records Assessment: Audited and assessed the company’s financial health, identifying key areas affecting the company’s value.

Contractual Review: Reviewed all contracts, including customer, vendor, and partnership agreements, to determine potential liabilities and transferability in the event of a sale.

Liabilities Assessment: Carefully examined all contingent liabilities, including pending litigations and potential regulatory penalties, to address them in the winddown strategy.

Exploration of Sale Alternatives: Explored a range of strategic sale alternatives, prioritizing solutions that would maximize return to creditors and shareholders.

Execution of a Sale Strategy: Orchestrated a sale of the company’s assets through an acqu-hire, leveraging the team’s talent to attract buyers, and the sale of IP to capitalize on the company’s technological advancements.

Additional Causes of Action: Aggressively pursued additional causes of action to recoup losses and enhance the financial position for distribution to creditors and shareholders.

Result

Resolute paid all creditors in full and distributed remaining assets to shareholders, concluding the winddown process in a manner that maximized stakeholder value.