What do you recommend to a vendor dealing with a company in financial distress?
Minneapolis Bankruptcy attorney Steven Silton explains what a vendor should do when dealing with a financially struggling company.
Email: [email protected]
Phone: (612) 260-9003
If you’re a vendor or a service provider and you’re dealing with a company that is in financial distress, it is very, very important to keep your credit terms, obviously, as tight as possible and assure that you’re not exposed for unsecured obligations that could be eliminated in a Chapter 7 bankruptcy or a Chapter 11 workout.
Interesting enough, if you’re a vendor with a company in bankruptcy, your rights are fairly substantial, and if you get court-ordered approval to continue to provide goods or services following a Chapter 11 bankruptcy, you will have a substantial priority claim in that bankruptcy.