When a business makes an assignment, its commercial lease is one of the most important assets and liabilities in the estate. How the assignee handles the lease affects both the business wind-down and the landlord’s recovery.
The Assignee’s Options
The assignee can: assume the lease and assign it to a buyer (in a going-concern sale), negotiate a consensual termination with the landlord, or simply surrender the premises. The landlord’s claim for future rent is an unsecured claim in the ABC — the landlord does not get paid first just because they hold a lease. Many commercial lease landlords prefer a negotiated surrender that puts them back in possession quickly, even if it means taking a loss on future rent.
A cooperative landlord can accelerate the ABC timeline. Landlords who negotiate quickly with the assignee allow the estate to close faster, which benefits all creditors including the landlord. Landlords who hold out for full remaining rent often end up waiting longer for less money. Experienced assignees cultivate relationships with major commercial landlords precisely because these negotiations are so common.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy, without a federal court filing. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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