Georgia introduced assignee liability, only to back-pedal after the state's subprime market started to seize up.
The agreement also provides that any heir, estate, trustee or permitted successor or assignee of Peretti will be bound by its terms.
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It is only necessary for the assignee to act in the best interests of the creditors (i.e. by getting them the most money possible).
In California, once the contract is signed, the assignee has 30 days to send out written notice of the assignment to the company's creditors.
Given what we've heard from ex-OnLive employees, it seems that the company has already assigned its assets, and the assignee has already sold them.
Pandigital is currently in the process of liquidation by the Assignee.
Subsequently, those creditors have six months to respond and submit proof of the amount of money that they're owed, so that the assignee can verify the claims.
Translation: the assignee's job is to get the creditors paid.
The ABC process begins when a debtor company signs a contract assigning its assets to a third-party assignee (like Sherwood), which acts as a fiduciary for the company's creditors.
It appears that OnLive's already well into the ABC process, and if that's the case, all that's left is for its assignee to verify the company's creditors' claims and dole out the cash accordingly.
This flexibility is one of the advantages provided by an ABC that's not afforded those filing for bankruptcy -- it allows the sale to happen quickly if the assignee thinks it financially advantageous to do so, and the process isn't dictated by the rules and procedures of the bankruptcy courts.
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