Chapter 128 is a Wisconsin bankruptcy alternative wherein a court appointed receiver assumes control of all of the assets of an organization and acts as a fiduciary for all creditors, secured and unsecured. The Receiver may choose to choose to operate the business if doing so is in the best interest of the creditors. In these cases, the Receiver will frequently appoint an operating agent to operate the business on a day-to-day basis. The business continues to operate under the receiver’s control until it can be sold, usually in an auction-like process. Any sale proceeds are then used to satisfy the secured and unsecured debts of the company. A major benefit of Chapter 128 is that the business transitions to new ownership free and clear of the debtor’s past problems.
Foxwood Associates has been appointed by Receiver’s and approved by the State of Wisconsin to operate Chapter 128 businesses on behalf of the Receiver. The role of the “operating agent” in these cases is to ensure the continuity of business operations until a going concern sale can be consummated. This involves securing employees, the supply chain and customers.
Foxwood Associates’ experience as business operators and turnaround professionals provides court appointed receivers with peace of mind that the businesses under their direction are well managed during the receivership period.
