Certain states have bankruptcy laws called "ABC" laws, or Assignment
for the Benefit of Creditors, that allow troubled businesses to avoid
all-out bankruptcy court proceedings.  This is governed by State
versus Federal law.  Does Louisiana have such laws and if so, what are
its main points? (I am interested in corporate ABC law not real
estate)

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Request for Question Clarification by pafalafa-ga on 11 Jan 2006 19:22 PST

sammy_guns-ga,

Why do you say that ABC laws are governed by state, rather than federal, law?

As far as I know, Assignments in lieu of bankruptcy are acceptable to
federal bankruptcy law.  States may or may not add particular
details/restrictions to the practice.

Assignment for the Benefit of Creditors is recognized in Louisiana --
I found four references to it in LA state code.  But it seems to be
largely a simple recognition that ABC is a form of legally-recognized
insolvency.  I did not see any specific processes or restrictions on
ABC in Louisiana.

Does that jive with your understanding of things?  If so, what
additional information are you looking for to make for a complete
answer to your question?

Let me know,

pafalafa-ga

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Clarification of Question by sammy_guns-ga on 11 Jan 2006 19:31 PST

Every legal article I read says "ABC's are governed by state law and
vary significantly from state to state".  So, if it is true that they
hold in Louisiana, I would like to know what the main points are
specific to Louisiana, or even better, how they (ABC rules) differ in
LA from other states.

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Clarification of Question by sammy_guns-ga on 11 Jan 2006 19:33 PST

One other thought - any news articles you could point me to regarding
a Louisiana company that has undergone an ABC would satisfy me that
this can be done in the state