Legal Question in Business Law in California

You didn't say how it was the employees received this lien. Their attorney could file a petition with the bankruptcy court to have the company placed in involuntary bankruptcy (which might or might not be a bad thing). Or they could file in the superior court to have the company placed in receivership.

Depends upon several things not mentioned or not sufficiently set forth in the question. First, I guess, is that the employees' rights and options will very much depend upon the amount of the lien in relation to the value of the company. If the company is worth $10 million and the lien is for $500K, an out-and-out takeover seems quite unlikely. Also, if the business is a corporation, remember that it is owned and run (indirectly, usually) by its shareholders, and the lien is against the corporation, not the shareholders, so the employees cannot grab the stock. Also, how are the employees organized? Did they prevail in a lawsuit, or at the labor commissioner? Can they act together?

A bankruptcy or receivership may be necessary to sort out and prioritize conflicting claims if the company is unable to satisfy all demands or there is uncertainty about which claims have priority, which are secured, etc.

If they want to avoid a bankruptcy, and can act cohesively as a unit, perhaps they should retain a business attorney to explore a court-appointed receiver to run the corporation for their benefit so that the lien can be satisfied without destroying the company. Don't throw out the baby with the bath water.

I would be pleased to work up a more complete answer if you can send me more info directly, and no obligation. Useful info would be type of business organization, approximate size (market value, for example, or sales), amount and nature of lien, and so forth.