Definition
An assignment for the benefit of creditors is a state-law alternative to bankruptcy in which a failing company transfers its assets to an assignee, who sells them and pays creditors from the proceeds. Company data can be one of the assets the assignee sells or licenses.
Why it matters when licensing company data
Once the assignment is made, the assignee, not the founders, decides what to do with the company's records. Founders who want the records sold or licensed should raise it before the assignment and keep admin access to the systems that hold them.
See company data in an ABC and selling a defunct company's data.
Source
Fox Rothschild: ABCs as a state-law alternative to Chapter 7. Definition reviewed November 7, 2026 by Origin Data Partners.