• ABC under Delaware law rather than the law of the state where the business was located
• Assignee liquidated all manufacturing equipment and patent portfolio
• Secured creditor consented to the ABC process and while not paid in full, received more than expected from the liquidation process

DSI Assignments, LLC was the assignee for the benefit of creditors of this medical device start-up. Cohera patented TissuGlu®, a product to help healing from surgical procedures.

When Cohera’s second product line failed to get FDA approval, the equity sponsor, which was also the secured creditor, elected to shut off funding and the company. While the company was located in North Carolina, it was a Delaware corporation and elected to use a General Assignment under Delaware law. The Assignee sold all the manufacturing equipment and Cohera’s patent portfolio, with the Chancery Court’s oversight.