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SmartLabs Assignment Notice


hart2hart

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On 4/30/2022 at 9:55 AM, elvisimprsntr said:

I haven’t got one. Are all customers getting them or just licensed installers/ resellers?

Seems like everyone, and they have prioritized them in order of who is more likely to have a claim.

I think the legal process requires them to notify all suppliers and customers.

On 4/30/2022 at 10:46 AM, cwagner2401 said:

I got one.  Not sure why - guessing they send to all customers?

Because some customers may have sent in warranty returns that they won't get back, might have been billed for products they will never received, may have warranty coverage that will now be useless, may have paid for an online subscription that now gives them no benefit, and "deserve to know".

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Not sure if things have changed now.

When it happened to me years ago. Federal, State and Local owed taxes and fee where top of the list. Then secured loans. End users where at the bottom of the list.

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1 hour ago, Brian H said:

Not sure if things have changed now.

When it happened to me years ago. Federal, State and Local owed taxes and fee where top of the list. Then secured loans. End users where at the bottom of the list.

They'll end up with a check for 25cents after preordering 200 dollars worth of product.

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1 hour ago, upstatemike said:

"despite their similiarity in name, Assignor and Assignee have no corporate affiliation to each other." So how does that work?

Exactly what it says.

A completely new, and transitory company (likely in it's charter it is for the purpose of winding-up).

Clearly, the party of the first part isn't going to sue the party of the second part for trademark infringement.

But aren't these usually named like "blah blah liquidation company", etc.?

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Exactly what it says.

A completely new, and transitory company (likely in it's charter it is for the purpose of winding-up).
Clearly, the party of the first part isn't going to sue the party of the second part for trademark infringement.
But aren't these usually named like "blah blah liquidation company", etc.?

In Cali an “ABC” company like this one stands for “Assignment for the Benefit of Creditors”, fancy name for liquidation company.
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Just seems like they should have made the names different for appearance sake if for no other reason. Are they trying to look as sleazy as possible for some reason? If I was a creditor I woud not trust this company was working to benefit me rather than working to benefit the debtor.

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14 hours ago, upstatemike said:

Just seems like they should have made the names different for appearance sake if for no other reason. Are they trying to look as sleazy as possible for some reason? If I was a creditor I woud not trust this company was working to benefit me rather than working to benefit the debtor.

apnar has it!

Here's a useful summary of the process and why it's named that way:

https://www.stimmel-law.com/en/articles/assignments-benefits-creditors-abcs-basics-california

According to above, an ABC is an alternative to formal bankruptcy.

"The Assignee is generally an unrelated professional liquidator selected by the Assignor. The Assignee gathers the Assignor’s assets and sells the Assignor’s right, title and interest in those assets, then distributes the proceeds to Creditors in accordance with statutory priorities.

The Assignee has a fiduciary duty to the Creditors. Assignee’s duties include protecting the assets of the estate, administering them fairly and representing the estate. Assignee is free to enter into contracts to recover assets or liquidated claims, e.g. filing suit or taking other action."

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A tough search, because the California Alcohol and Beverages Commission is also referred to as "ABC", so "California ABC <insert anything here>" results are dominated by alcohol licensing information.

Maybe a good thing, we could all use a stiff one I'm sure!

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47 minutes ago, jtara92101 said:

apnar has it!

Here's a useful summary of the process and why it's named that way:

https://www.stimmel-law.com/en/articles/assignments-benefits-creditors-abcs-basics-california

According to above, an ABC is an alternative to formal bankruptcy.

"The Assignee is generally an unrelated professional liquidator selected by the Assignor. The Assignee gathers the Assignor’s assets and sells the Assignor’s right, title and interest in those assets, then distributes the proceeds to Creditors in accordance with statutory priorities.

The Assignee has a fiduciary duty to the Creditors. Assignee’s duties include protecting the assets of the estate, administering them fairly and representing the estate. Assignee is free to enter into contracts to recover assets or liquidated claims, e.g. filing suit or taking other action."

---

A tough search, because the California Alcohol and Beverages Commission is also referred to as "ABC", so "California ABC <insert anything here>" results are dominated by alcohol licensing information.

Maybe a good thing, we could all use a stiff one I'm sure!

...advice from the girlfriend?

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Yeah, the Assignee handles everything on behalf of the now bankrupt company to make sure there is an orderly dissolution (if that's what is needed). It's usually court appointed and makes all the decisions on how to get the most money back to the Creditors while complying with any bankruptcy laws that may be in place. Every state is a little different, but the creditors could have required things like agreements to not file bankruptcy and had to use this ABC structure, etc. when they loaned the money. I imagine it will still take a long time to work through all this and the small frys will get pushed out for secured creditors, but the ABC would technically have a fiduciary responsibility to anyone who received this letter and is in fact a creditor. Not any legal opinion just my 2 cents. 

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