Committee backs Uniform Assignment for Benefit of Creditors Act and votes to report SB 267

The House Judiciary Committee on May 13 heard expert testimony and voted to release SB 267, a bill to enact the Uniform Assignment for Benefit of Creditors (ABC) Act and repeal Delaware’s antiquated 1875 statute.

Russell Silberleid, who participated in drafting and explained the uniform act’s purpose, described ABCs as a state-law mechanism roughly analogous to a chapter 7 liquidation: "This is not like a reorganization of a corporation. It's to liquidate a company," Silberleid said, and argued modernizing the statute responds to growing interest in ABCs as a lower-cost alternative to federal bankruptcy.

Mark Petrona of the Division of Legislative Services, who is a Delaware commissioner to the Uniform Law Commission, also testified and answered questions about the draft’s interaction with other priority rules, including municipal tax liens. Silberleid said the uniform act defers to the Uniform Commercial Code on priority, so preexisting municipal liens retain superior priority.

Jane Sterneke (Legislative Counsel, Uniform Law Commission) provided virtual public comment in support, noting the act was finalized in late 2025 and enacted so far in several states. Committee members asked about disclosure of administrative fees to creditors and whether municipalities’ tax-lien claims would be affected; Silberleid said the uniform act requires disclosure of the assignee’s fee and that creditors could petition the Court of Chancery if a fee appeared exorbitant.

Representative Romer moved to release SB 267; the committee voted and the clerk announced the bill had received the required votes to be reported out.

Next steps: staff will circulate the bill for signatures and post the report to the legislative website.