More on the LesiureLink Saga

Resort Trades received the notice, “Assignment for the Benefit of Creditors,” from LeisureLink, Inc. on November 2, 2016 (dated September 28, 2016). According to Wikipedia, an Assignment for the Benefit of Creditors is used in some cases in the place of bankruptcy: “In the United states, a general assignment or an assignment for the benefit of creditors is simply a contract whereby the insolvent entity (“Assignor”) transfers legal and equitable title, as well as custody and control of its property, to a third party (“Assignee”) in trust, to apply the proceeds of sale to the assignor’s creditors in accord with priorities established by law. [citation needed]

“An assignment for the benefit of creditors is a relatively well-established common law tool and is one alternative to a bankruptcy. An assignment for the benefit of creditors is designed to save time and expense by concluding the affairs of a bankrupt company. The assignment for the benefit of creditors is a state form of bankruptcy action versus a federal form of bankruptcy action. The assignment for the benefit of creditor’s process is similar in character to a Chapter 7 bankruptcy and parallels some of the same procedures, but is not an actual “bankruptcy” in the form the word is used in the United States. [citation needed]”