Real estate development companies that become insolvent face ABCs of particular complexity. Entitlements, construction loans, partially completed projects, and multi-party development agreements all create issues that require specialized assignee experience.
Development Company Issues
Key issues include: valuing entitlements (which may have significant value to developers who want to skip the approval process), handling partially completed construction (which requires decisions about whether to finish or sell as-is), managing construction lender relationships, and resolving claims from subcontractors and suppliers who have mechanic’s lien rights.
Partially completed projects present the hardest valuation decisions. A project that is 60% complete may be worth more finished than as-is — but completing it requires capital the estate doesn’t have. The assignee must model both scenarios and find a buyer willing to take the project in its current state and complete it on their own account.
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. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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