Rally consultants are experienced in working with clients and other professionals involved in a reorganization process in U.S. Bankruptcy Court and providing other litigation support services. Our team collaborates with all stakeholder parties, including the U.S. Trustee, debtor-in-possession, company management, creditors and creditor committees and their representatives. We provide short-term operational, financial and managerial support, which can include serving in a custodial capacity and interim senior management roles, such as CRO, CEO, CFO and COO. Rally prepares monthly operating reports, cash flow budgets, projections and other financial reporting that may be required to support a plan for recovery and a exit from an insolvency process.
Non-Judicial Insolvency Services
Assignment for the Benefit of Creditors “ABC”
Illinois and eleven other states permit common law Assignments for the Benefit of Creditors, a non-judicial alternative to bankruptcy commonly referred to as the “Assignment.” Rally utilizes the Assignment process to bring an innovative, efficient and cost-effective approach to transitioning the assets of an insolvent business. Initiated by the shareholders and directors of a company, the Assignment is a voluntary transfer of all the business assets to a Trustee, or Assignee, in trust, for the specific purpose of selling the business assets as a going concern or to liquidate the assets.
During the Assignment, the Assignee may also serve as interim senior management or other executive roles in order to maximize recovery. At the conclusion of the asset recovery, the Assignee is required to pay creditors under priorities established by law. The Assignment for the Benefit of Creditors allows Rally to maximize recovery by reducing professional fees and other expenses, thereby generating a potential return for creditors that would not be possible through a more time-consuming judicial proceeding.
Trade Creditor Agreements
Working in collaboration with debtors’ and creditors’ attorneys alike, Rally professionals negotiate and monitor compliance of forbearance agreements, formal payment plans, extension agreements and moratoriums as required by the specific circumstances. This service is a viable option to both debtors and creditors who find themselves in business situations that can be remediated by consensual arrangement, but are experiencing temporary financial difficulties and are unable to generate sufficient cash flow to pay debts.
Rally professionals serve as court-appointed receivers for real estate and business assets. At the request of a secured lender or other stakeholders, these appointments involve specific oversight, direction and authority during foreclosure, ownership disputes and even litigation proceedings. Rally utilizes the support of technical and administrative staff and resources to protect the disputed assets and bring the matter to a successful resolution.