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Vendors Bankruptcy Code

Troutman Pepper

Who Is the Claims Agent and What Type of Information Can I Obtain on Their Website? - Creditor’s Rights Toolkit

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Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy. A claims agent is a third party retained by the debtor to take on...more

Cole Schotz

Top Considerations for Vendors Dealing with Distressed Companies

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As of March 2023, commercial chapter 11 filings were up 79% compared to the same period of 2022, which includes a number of large retailers. The first quarter of 2023 saw the highest number of corporate bankruptcy filings in...more

Lowenstein Sandler LLP

The “Catch-22” of Preference Law

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The U.S. Bankruptcy Code allows a trustee or debtor-in-possession to claw back certain payments or transfers made to a creditor during the 90 days prior to the petition date, based on the principle that such payments unfairly...more

Lowenstein Sandler LLP

Do Not Take Consignments Lightly

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While things worked out for vendors who did not file a UCC-1 in the Sports Authority Chapter 11, you may not be so lucky. Never assume that it is not necessary to properly perfect a consignment arrangement by filing a...more

Nelson Mullins Riley & Scarborough LLP

Venue Provisions Fail to Provide Relief in Smaller Dollar Preference Cases

Almost two years ago, the Small Business Reorganization Act of 2019 (SBRA) was enacted. While the provisions regarding the new Subchapter V reorganization received the most press (streamlined chapter 11 for businesses with...more

Dorsey & Whitney LLP

Paper Source Bankruptcy Offers Lessons for Vendors Playing Their Cards

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On March 2, 2021, stationery and gift retailer Paper Source filed for chapter 11 bankruptcy, stating in court filings that effects of the COVID-19 pandemic damaged its finances and operations. Paper Source stated that in...more

Lowenstein Sandler LLP

Preference Defense In the Wake Of The Pandemic: A Primer

Nothing is more frustrating to a trade creditor holding a large unpaid balance owed by a debtor in bankruptcy than the risk that payments the trade creditor received before the debtor filed bankruptcy may be clawed back by...more

K&L Gates LLP

Litigation Minute: Bankruptcy Issues for Vendors and Other Contractual Counterparties

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WHAT YOU NEED TO KNOW IN A MINUTE OR LESS - Companies should anticipate the possibility that they will find themselves in a situation where a vendor, customer, or other contract counterparty commences a bankruptcy case...more

White and Williams LLP

COVID-19 Pandemic Preference Amendments to Bankruptcy Code Benefiting Vendors, Customers, Commercial Landlords and Tenants

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Over the last three months, Congress has passed major pieces of legislation primarily in response to the COVID-19 pandemic, including the Consolidated Appropriations Act of 2021 (CAA), which was signed into law on December...more

Arnall Golden Gregory LLP

Why Almost Anyone - Borrowers, Lenders, Landlords, Tenants, Vendors and Others - Should Care About Recent Amendments to the...

On December 27, 2020, the Consolidated Appropriation Act (“CAA”) was signed into law. The CAA amends the Bankruptcy Code in several significant respects. Most of the amendments expire in either one or two years unless they...more

Haynsworth Sinkler Boyd, P.A.

Six Questions To Ask When Your Vendor, Supplier, Or Customer Files Bankruptcy

After almost eighth months of dealing with the severe economic impact of COVID-19, it is not surprising that more and more businesses are turning to bankruptcy for relief. Commercial filings continue to rise as many...more

Obermayer Rebmann Maxwell & Hippel LLP

Letters Of Credit: Tool or Trap for Trade Vendors Dealing With Customers at Risk for Bankruptcy

The impact of the internet on brick-and-mortar retail, compounded by the economic devastation of the COVID-19 crisis, has created an unpredictable environment for trade vendors and service providers amid an uptick in...more

Dechert LLP

Are Critical Vendors Insulated from Preference Actions?

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No, says the Delaware Bankruptcy Court in In re Maxus Energy Corp. In Maxus, the defendant, Vista Analytical Laboratory, Inc. (“Vista” or the “Defendant”), a designated critical vendor, sought summary judgement dismissing the...more

Lowenstein Sandler LLP

Seeking Lender Relief During Uncertainty And Distress

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Periods of uncertainty and distress create many questions that businesses must answer. Will they have the human resources and materials with which to produce goods and perform services for your customers? Will their customers...more

Troutman Pepper

Restructuring In The Time Of Coronavirus

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An increasing number of businesses — even those that have traditionally been financially and operationally sound — are now experiencing unanticipated revenue losses as a result of the coronavirus pandemic. Companies may find...more

BCLP

Avoid a Catastrophic Loss From a Customer’s Bankruptcy - Five Tips

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One day, you get a notice in the mail that an important customer has filed chapter 11. Your customer recently paid $250,000 on invoices that were delinquent for several months and still owes you $500,000....more

Foley & Lardner LLP

Not All Creditors Are Created Equal: Critical Vendors and Bankruptcy

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Recent economic indicators suggest that the manufacturing industry in the United States has contracted and that the economy may be headed towards recession. Such news is cause for concern for both healthy and struggling...more

Obermayer Rebmann Maxwell & Hippel LLP

The Big Problem With Small Preferences: The Inconsistent Application of the Small-Dollar Venue Exception Creates Opportunities for...

Vendors who sell goods to troubled businesses are often shocked when they are later sued by the debtor, a creditors’ committee or a trustee for the avoidance and recovery of preferential transfers. For the benefit of the...more

Shumaker, Loop & Kendrick, LLP

Chapter 15: Delaware Court Sends U.S. Creditor Packing … to Italy

In the Chapter 15 proceeding of Energy Coal S.p.A., the Delaware Bankruptcy Court required a U.S. creditor to recover its claim in Italy....more

Jones Day

To Have and to Hold: Third Circuit Rules That Physical Possession of Goods Is Required Under Section 503(b)(9) of the Bankruptcy...

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Since its enactment as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, section 503(b)(9) of the Bankruptcy Code has provided an important safety net for creditors selling goods to financially...more

Obermayer Rebmann Maxwell & Hippel LLP

The Cookie Crumbles in Baker’s Bid for a § 503(b)(9) Administrative Claim

Under section 503(b)(9) of the Bankruptcy Code, a creditor may recover as a priority administrative expense the value of goods sold to the debtor in the ordinary course of its business that are “received” by the debtor within...more

BCLP

The Jevic Files Continue: Pioneer-ing the Post-Jevic Era, and Wondering if Jevic Altered Critical Vendor Theory After All?

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The Supreme Court’s Jevic ruling last spring remains a treasure trove of bankruptcy theory, suitable for the novice bankruptcy student and highly instructional for those of us who have practiced in chapter 11 for years. We at...more

Katten Muchin Rosenman LLP

Sears Canada Files for CCAA Protection: A Distressed Investor's Overview of US Bankruptcy and Canadian Insolvency Law

On June 22, Sears Canada Inc. ("Sears Canada") and certain affiliates1 (collectively, the "Sears Canada Group") sought and obtained insolvency protection under the Companies' Creditors Arrangement Act (CCAA) from the Ontario...more

Burr & Forman

Shipped Goods Deemed “Received” Upon Physical Possession for Allowed Claims for Administrative Expenses in Bankruptcy

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Signed, sealed, delivered, but am I yours? Apparently not, according to the United States Court of Appeals for the Third Circuit, at least in the context of allowed administrative expense claims under Section 503(b)(9) of the...more

Shumaker, Loop & Kendrick, LLP

Recent Article on the Nuts and Bolts of Section 503(b)(9) Claims in Chapter 11 Cases

The so-called 20-day administrative priority claim (set forth in Section 503(b)(9) of the Bankruptcy Code) is perhaps the best remedy available to vendor creditors in Chapter 11 cases....more

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