Description
Learn the risks associated with providing credit to a Chapter 11 client as well as what actions can be taken in the case of nonpayment.When a customer files a Chapter 11 bankruptcy, a host of questions arise for the vendor. What happens to the sum owed to the company prior to bankruptcy? Does the company have to continue to provide servicesgoods to the Chapter 11 debtor in possession? If the company does continue to provide goodsservices, is it in a better position, or is it just deepening a bad debt? Is the company going to be pursued by the debtor, a committee, or a trustee? In this presentation, Robert Westermann and Brittany Falabella of Hirschler in Richmond, Virginia, will walk through the considerations and implications of the decisions a vendor will have to make when faced with a customer that files for bankruptcy relief under Chapter 11.
Date: 2023-01-25 Start Time: End Time:
Learning Objectives
Considerations Prior to Bankruptcy
• Get Contracts in Shape and Make Sure They Are Followed
• Payments/Consistency
• Prepayments
• Letters of Credit
• What to Do With Troubled Accounts – Changing Terms
• Proper Documentation of Above
• Risk/Considerations: Avoidance Actions
• Preferences
Bankruptcy Considerations
• Critical Vendor Status
• Decision on Whether to Continue to Provide Goods/Services
• Is There a Debtor in Possession Financing/Approved Use of Cash Collateral in Place?
• Change Payment Terms
• Analysis of the Success of the Case/Importance of the Account
• Prepetition Contract in Place
• Assumption/Rejection of Executory Contract
• Obligation to Continue to Provide Under Contract
• Vendor Claims
• Pre-Petition Claim
• Post-Petition Administrative Claim
• Setoff
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Brittany B. Falabella-Hirschler Fleischer, Robert (Robbie) S. Westermann – Hirschler Fleischer
