Manufacturing Today - Spring 2010 - (Page 26)

FEATURE BY KURT M. CARLSON M F G TOMORROW B USINESS VALUE P ROFITIABILITY I MPROVEMENT C ONTENTS G ROWTH G LOBAL C OSTS Facing Insolvency An Alternative to Bankruptcy ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// While the auto industry provided the highest-profile examples of manufacturing industry insolvency last year, scores of other manufacturers – both large and small – still face extraordinary financial pressures. If a business is in dire straits, it may appear that the only option is to either reorganize the business or liquidate assets through the bankruptcy courts. M F G TOMORROW C ONTENTS G ROWTH But this results in significant time and expenses. It also comes with burdens associated with Chapter 11 and Chapter 7 filings. In addition, if a principal were to just walk away from a business, it would open him or her up to breach of fiduciary duties and personal liability claims. For these reasons and others, another recognized and accepted insolvency mechanism that also prevents deepening losses is worthy of consideration. More and more companies facing insolvency are turning to an assignment for the benefit of creditors, commonly known as an ABC, as a means of wrapping up their business. Oftentimes creditors recoil at the prospect of facing an ABC because in many states, there is no judicial oversight involved. In other states, an ABC is a creature of statute and judicial oversight is required. The U.S. Supreme Court has long held, however, that ABCs are an inexpensive, fast and simple way of accomplishing the same result as a bankruptcy with the same ultimate goal – a fair distribution to creditors of a debtor’s property. An ABC is an absolute and voluntary assignment of G LOBAL SPRING 2010 C OSTS B USINESS VALUE P ARTNERSHIPS P ROFITIABILITY I MPROVEMENT

Table of Contents for the Digital Edition of Manufacturing Today - Spring 2010

Manufacturing Today - Spring 2010
Global Strategies
Cost Concerns
Growth Opportunities
Continuous Improvement
Business Value
Juanita’s Foods
Les Plats du Chef
Gardner Denver
Smeal Fire Apparatus Co.
Club Car Inc.
Parkson Corp.
MKS Instruments Inc.
Amity Technology
Co-Operative Industries
Corbi Plastics
Elyria/Hodge Foundries Co.
Inteplast Group Ltd.
Willbanks Metals
Zotos International Inc.
Akron Foundry Co.
Alo North America
Bosal International
First American Plastic Molding Enterprise
MAC Equipment
Mayville Engineering Co. Inc.
Kurtz Bros. Inc.
Aesco Electronics
Code 3 Inc.
Columbia Marking Tools
Euro-Rite Cabinets
Fampec Technology LLC
Faubion Associates Inc.
Ginsey Industries Inc.
Imagineering Finishing Technologies
Imperial Woodworks Inc.
Innovative Lighting
Liburdi Dimetrics
MTC Transformers
Plastiques GPR
S.A. Robotics
Sunrise Windows
Positran Manufacturing Inc.
Manufacturing Tomorrow

Manufacturing Today - Spring 2010