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Form #1310Debtor corporation's agreement for continuation of business
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Debtor corporation's agreement for continuation of business
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Debtor corporation's
agreement for continuation of business.
Agreement entered into at _________ on _________[date]
between the _________ Company of _________, referred to as company, and its
several merchandise creditors, called creditors.
Company is at this time unable to meet its
obligations, and it being to the advantage of all interested that the business
should be continued as a going concern until such time as a sale of the
merchandise stock and fixtures can be made, it is agreed between company and
creditors as shown by the list included in this agreement, that on and after
this date the business of company shall be operated as follows:
The business is to continue under the present
management of _________.
From the cash proceeds of the business there shall be
paid in order as follows:
(1). All salaries and expenses of the previous month.
(2). All purchases of the previous month shall be
discounted on or before the fifteenth of month.
(3). Payment of at least _____% on the total of all
claims listed as of _________[date] shall be made on or before the 30th
of each month beginning _________[date] it being agreed that all present
claims of $_____ or less and all labor claims shall be paid in full as soon as
possible.
The expenses of the business shall be held down to the
lowest possible outlay. The total purchases of merchandise, including freight,
shall be limited each month to an amount not exceeding 50% of the previous
month's cash receipts. A weekly statement giving correctly the following
information shall be furnished by the manager to _________:
(1). Showing the amount of sales for the previous
week.
(2). Showing the amount of cash receipts for the
previous week.
(3). Showing the amount of merchandise purchases.
(4). Showing the amounts paid out and to whom during
the previous week.
No payments of any nature or any amount shall be made
other than those specified above without the consent of _________, acting for
creditors.
Should company fail to perform any of the above
conditions or fail to make any of the payments as called for in this agreement,
they will, on request of creditors representing 50% of their total indebtedness
as of _________[date] give a bill of sale or assignment of all their
assets for the benefit of all creditors as shown by this agreement, to the
person designated by 50% of the creditors.
All purchases of merchandise made during the life of
this agreement shall be made only from the firms participating in this
agreement and no other purchases or indebtedness of any kind shall be incurred.
As long as company shall faithfully respect all the
conditions of this agreement, and shall make all payments as agreed each month,
creditors signing this agreement will not start any action or require payments
other than as shown by this agreement.
Creditors participating in this agreement and their
respective amounts due as of _________[date] are as follows: _________.
All amounts listed above are to bear interest at the
rate of _____% per annum after _________[date].
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not be construed as legal advice. You are strongly encouraged to consult competent
legal council before engaging in any action based upon content contained on this
site.
These downloadable forms are only for personal use. Retransmission, redistribution,
or any other commercial use is prohibited. This includes reposting forms from this
site to another site offering free legal or other document forms for download.
Please note that the donator may have included different usage terms regarding this
form, and you agree to abide by these terms. It is highly recommended that you have
a licensed attorney review any legal documents for which you are searching in order
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Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
for any damage you might incur from your use of any submissions contained on this
site. If you do not agree to the above terms, please do not proceed.
These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
about the competence, character or qualifications of its participating members.
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Keywords: Debtor,corporation,agreement,continuation,business
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