Proactively Protecting Your Company’s Accounts’ Receivable Before Bankruptcy Hits

As the world begins to recover from the COVID-19 pandemic the tsunami of bankruptcy filings is not at an end. It is more important than ever for credit executives to be proactive in protecting their company’s accounts receivable even before they become due.

As companies have reopened their businesses, trade credit grantors are being asked to extend credit, sometimes with larger dollar exposures. Utilizing the tools available to you can safeguard your company from a bad debt exposure in the future even if your customer files for chapter 11 protection.

Credit grantors will also want to insulate themselves from a potential preference attack in a future Chapter 11 proceeding. This program will discuss how to determine which tool is the best option for your company and how to properly document that choice once you have decided.

Tools that will be discussed are:

·  General Security Interests

·  Purchase Money Security Interests

·  Consignments

·  Personal Guaranties

·  Cross-Corporate Guaranties

·  Letters of Credit

This event is presented by Wanda Borgess. For more than forty years, Ms. Borges has concentrated her practice on commercial litigation and creditors’ rights in bankruptcy matters, representing corporate clients and creditors’ committees throughout the United States in Chapter 11 proceedings, out of court settlements, commercial transactions and preference litigation. It is sponsored by our partner BARR Credit Services.