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My Customer Filed Bankruptcy, Now What?

Presented by: Bruce Nathan, Jeffrey Cohen


August 17, 2017
9:00 AM to 10:00 AM PST

Price: $49.00 Member, $69.00 Non-Member



It’s the moment you most dread: you found out that your customer is at risk of filing or has just filed a Chapter 11 bankruptcy case. There will be a discussion of the circumstances where credit providers can exercise their UCC adequate assurance, stoppage of delivery and reclamation rights to relieve themselves of their obligation to extend credit to their troubled customers under their existing agreements or expedite the payment of their claims. The importance of understanding the papers filed at the beginning of a bankruptcy case, the risk of doing business with a chapter 11 debtor that has not yet obtained the approval of financing or use of cash collateral,  the impact of the automatic stay that arises when bankruptcy is filed, critical vendor protection, filing a proof of claim and responding to an objection to claim will also be covered. Bankruptcy Code Section 503(b)(9) has also significantly enhanced trade creditor rights by granting goods sellers whose customer has filed bankruptcy an administrative priority claim for the value of their goods received by the Debtor within 20 days of bankruptcy. The program will also focus on how to assert this priority claim and the significant litigation concerning Section 503(b)(9)'s requirements and the defenses to priority status that seek to limit or defeat recovery by trade creditors and the resulting court decisions concerning this claim. Bankruptcy reclamation rights and a recent Delaware bankruptcy court decision favorably impacting reclamation rights will also be discussed. The program will cover the rights of creditors that are parties to "executory contracts," such as supply and services agreements and purchase orders, after their customer files bankruptcy, all with the goal of limiting the risk of additional losses as a result of a failed bankruptcy case. Finally, time permitting, there will be a quick discussion of the role of creditors' committees in Chapter 11 cases and the preliminary steps that should be taken when the bankruptcy is filed to assist in defending preference claims.

Presenter Bio:

Bruce S. Nathan, Partner in Lowenstein Sandler's Bankruptcy, Financial Reorganization & Creditors' Rights Department, has more than 30 years' experience in the bankruptcy and insolvency field, and is a recognized national expert on trade creditor rights and the representation of trade creditors in bankruptcy and other legal matters.  Bruce has represented trade and other unsecured creditors, unsecured creditors' committees, secured creditors, and other interested parties in many of the larger Chapter 11 cases that have been filed, and is currently representing the liquidating trust and previously represented the creditors' committee in the Borders Group Inc. Chapter 11 case.  Bruce also handles letters of credit, guarantees, credit insurance and security, consignment, accounts receivable put, bailment, tolling, and other agreements and legal credit issues for the credit departments of institutional clients.

A trusted advisor to unsecured creditors, creditors’ committees, and debtors, Jeffrey Cohen’s tenacious counsel adds steady momentum to our growing client base in retail bankruptcy and is a strong resource to distressed clients in the technology sector. His practice centers on Chapter 11 bankruptcy reorganizations and related litigation.


Jeff has served as counsel to the creditors' committee in several of the most prominent retail and technology Chapter 11 cases in the country, notably retail matters such as Vestis (Eastern Mountain Sports, Bob’s Stores, Sports Chalet), City Sports, Skymall, Brookstone, Blockbuster Video, Filene’s Basement, Allen's, Alexander Gallo Holdings, Signature Styles (dba Spiegel, Newport News and ShapeFx), Archbrook Laguna Holdings, Oriental Trading, Claim Jumper Restaurants, Pizzeria Uno, KB Toys, Lenox China, Sports Collectibles (dba BC Sports), Goody's Family Clothing, Boscov's, Scooter Stores, Wickes Furniture, The Bombay Company, Levitz Furniture, Harvey Electronics, Bachrach

Clothing, Rag Shops, Norstan Apparel Shops, Troutman's Emporium, The Walking Co., Vertis Holdings, Velo Holdings, Christopher's Men's Stores, and Cornell Trading. Technology representations include Atari, Beyond Oblivion, KIT Digital, Fuhu, and HipCricket.

For More Information Contact:
Ann Westpy (702) 9032643-0
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