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It’s rarely good news when your customer files a Chapter 11 bankruptcy. However, when it happens, you can prevent a bad situation from becoming worse by adhering to these five essential rules of the road for protecting your company’s interests.
There are numerous defenses under the Bankruptcy Code against such demands for the return of preferences. Have your attorney explain these defenses to you, and advise you as to whether you may be able to take advantage of one or more of them to substantially limit any obligation to repay a preference.
If you would like to learn more about ways you can protect your company’s interests in the event of a customer filing bankruptcy, please contact me at firstname.lastname@example.org or 919.250.2118.
Byron Saintsing leads a practice group focused on matters involving construction law, commercial and business litigation, representation of equipment lessors, charter schools, and education law, and commercial creditor bankruptcy. Byron has written and lectured on many topics pertaining to construction and equipment leasing, including editing materials on North Carolina’s adoption of Article 2A of the Uniform Commercial Code....LEARN MORE