The bankruptcy of Purdue Pharma L.P. has become one of the most closely watched Chapter 11 cases in U.S. history. It is also a powerful illustration of a reality that many creditors underestimate at the outset of a bankruptcy case: even after a plan is “confirmed,” payment can remain uncertain for years. Purdue filed […]
Purdue Pharma: A Case Study in Why Time Matters for Creditors Read More »
For many businesses, the final quarter of the year is a time to assess performance, clean up balance sheets, and prepare for a stronger financial start in the year ahead. One area often overlooked is the impact of unresolved bankruptcy claims sitting on the books. While these claims may ultimately yield uncertain or minimal recoveries,
When a customer files for bankruptcy, trade creditors often face unexpected legal exposure: the threat of preference actions under Section 547 of the U.S. Bankruptcy Code. These actions allow a debtor or bankruptcy trustee to claw back payments made within 90 days before the filing—even when the creditor did nothing wrong.Defending a preference claim requires
Preference Indemnity: A Smarter Solution for Trade Creditors Facing Bankruptcy Clawbacks Read More »
When a company files for Chapter 11, the goal is rarely liquidation. Most of the time, it’s about survival and reorganization. But even when the intent is positive, the uncertainty that follows can cause real damage. It used to be that Debtors’ access to Debtor-in-Possession financing reassured vendors that they would get paid. But after
When a long-time customer files for Chapter 11 bankruptcy, vendors and suppliers face a difficult decision: should you keep supplying them, or walk away? Maintaining the relationship could mean ongoing sales and the chance to support a customer through a restructuring. However, extending trade credit in bankruptcy or after a customer emerges from bankruptcy carries
Dealing with the news that a customer filed chapter 11 can feel like a sudden financial storm. Accounts receivable departments, credit managers, and finance teams may find themselves navigating an unfamiliar legal landscape—one where standard collection processes pause and payment timelines stretch indefinitely. This guide breaks down the essentials of Chapter 11 for corporate creditors
Navigating Risks When Your Customer Filed Chapter 11: A Guide for Corporate Creditors Read More »
If you’re an unsecured creditor in Chapter 11 bankruptcy, you’re probably wondering: how much of my claim will I actually recover? The reality is that unsecured creditors are lower in the bankruptcy payment hierarchy, and recoveries can vary widely from case to case. In this article, we’ll explain how payouts work for unsecured creditors, what
How Much Are Unsecured Creditors Paid in Chapter 11? Read More »
