Liquidation Agent/Responsible Entity

In a business bankruptcy, when a business entity is in Chapter 11 and has decided that liquidation of its assets is in the best interests of all parties, existing management may not be best suited to lead the liquidation process. Under these circumstances, the appointment of a Liquidating Agent or a Responsible Entity may be the most efficient and cost-effective method for providing the highest and most prompt dividend to creditors.

Because the liquidation of the assets of an entity in Chapter 11 is under Bankruptcy Court supervision, Equitable Transitions, Inc. is uniquely suited to carry out the liquidation. David R. Haberbush, Esq. of Equitable Transitions, Inc., served as a Chapter 7 and Chapter 11 Trustee in Bankruptcy for more than 15 years and also served as the standing Chapter 12 Bankruptcy Trustee for the Central District of California for nearly two years. Mr. Haberbush and Equitable Transitions, Inc. are very familiar with all of the regulatory reporting requirements and necessary business bankruptcy procedures during the liquidation and Chapter 11 processes.

Responsible Entity: When a Chapter 11 bankruptcy is in process, and a plan of reorganization has not yet been formulated and/or approved by the United States Bankruptcy Court, the appointment of a Responsible Entity to carry out the disposal of assets for the benefit of creditors is the appropriate choice. The Responsible Entity will be responsible for securing and disposing of all assets for the highest and best value possible, consistent with the interests of all parties. Mr. Haberbush, during his service as a Bankruptcy Trustee, has liquidated and administered upwards of $100 million in assets.

Liquidating Agent: Often, when a Chapter 11 liquidating plan is approved by the Court, a Liquidating Agent is appointed to carry out the liquidation as provided by the Chapter 11 Plan. A single entity may serve as both of the Responsible Entity prior to the confirmation of a liquidating Chapter 11 plan and as the Liquidating Agent once the Chapter 11 Plan has been confirmed by Court order. Again, the qualifications and experience of the Liquidating Agent are important. The Liquidating Agent will not only be responsible for the disposition of assets, but the payment of allowed claims. As a Bankruptcy Trustee, Mr. Haberbush has disbursed tens of millions of dollars to creditors and is well familiar with the processes for doing so.

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