We will discuss the opportunities and risks for a credit professional with selling to a Chapter 11 debtor. We will also discuss administrative priorities, selling on credit in Chapter 11, vendors’ liens and cross-collateralization provisions. What steps should you consider to maximize payment on your prepetition debt when a customer files, as well as limit credit risk on any future sales? We will discuss voluntary filing requirements including where the customer may file (why Delaware?), first day motions, dealing with the debtor and postpetition sales, stopping goods in transit, set off rights and automatic stay. Additionally, we discuss allowance and payment of reclamation claims, the Chapter 11 plan, preference risk and waivers, creditors’ committee and the bar date.
Other areas of interest
