Define the following terms: (5) assignee (trustee).
Define the following terms:
During liquidation through assignment, the firm's assets are transferred in the name of a third party called the assignee or a trustee. The assignee is responsible for the sale of the assets and distribution of proceeds to the creditors. He sells the assets through a private sale or public auction. The assignee distributes the proceeds from the sale to the creditors on a pro-rata basis or full distribution of their claims. The assignee has flexibility in disposing of the assets and helps the creditors receive a better amount for their claims.
An assignee or a trustee is a third party who receives the title of the company’s assets at liquidation through the assignment. An assignee is responsible for the sale of those assets and distributes the proceeds to the creditors.