ABC Could Not Later File Bankruptcy

In a recent decision – 2015 WL 9241140 – the 11th Circuit held that after a business  executed an assignment for the benefit of creditors the appointed assignee could not then subsequently file the business into a bankruptcy.  However, the Court did leave the door open that an assignment could potentially expressly confer this power.  The case illustrates the importance in planning the wind down of a company and evaluating all options.