Diablo Management Group Services

Whatever your problem may be, DMG can assist you in navigating through the minefield of options and choices. There is no single choice that is optimal for all business situations.

Out of Court versus Court Settlements

Out of Court versus Court Settlements
  Managed Liquidation ABC Chapter 11 Chapter 7
Control of Process Company Fiduciary Control Creditor Control Court Control Trustee Control
Costs Fees for Retained Professionals, If Required Assignee Fee plus a Percentage of What is Returned to Creditors Professional Legal Fees & Court Costs All Funds Turned Over to Trustee
Time Involved No Legal Process Delays Dependent on Assignee/Creditor Cooperation 120 Day Minimum Indefinite
Control of Distribution Company Assignee/Trustee Debtor-in-Possession with Court Approval Trustee with Court Approval
Protection from Creditors Exposure to Legal Challenges Uncooperative Creditors Can Petition for BK Automatic Stay Automatic Stay
Creditor Claims No "Objection to Claims" Process No "Objection to Claims" Process Proof-of-Claims Process Proof-of-Claims Process
D&O Liability Yes Yes Limited No
Fiduciary Legal Exposure Yes Yes No  
Trustee/Fiduciary Fiduciary Assignee Debtor-In-Possession Trustee
Asset Sale/Disposition Contractual Agreements with Buyer(s), Creditors, Stockholders Requires Creditor Approval Court Approval Trustee Obtains Court Approval
Legal Clarity Provided by Contractual Agreements No "Free & Clear" Order from Court Court Approval Court Approval
Completion of Non-Creditor Wind-Down Obligations Yes No Yes Yes
© 2003-2014 Diablo Management Group. All Rights Reserved. | DianeV.com