The National Association of Credit Management: Legal Workshop Series


Teleconference: My Customer Just Filed Bankruptcy—Now What?
NACM Teleconference


My Customer Just Filed Bankruptcy—Now What?


General Information

Time: 3:00 - 4:30 pm EST added advantage 2011 sm
Cost: $129.00 per line

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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 stoppage of delivery and adequate assurance rights to allow them to relieve themselves of their obligation to extend credit to their troubled customers under their existing agreements or expedite the payment of their claims. 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 and state law reclamation rights and the issues and defenses that have gutted reclamation rights as an effective bankruptcy remedy will also be discussed. This program will also 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 impact of the automatic stay, critical vendor protection, filing a proof of claim, the role of creditors' committees in chapter 11 cases and preliminary steps that should be taken when the bankruptcy is filed to assist in defending preference claims.


Bruce S. Nathan, Esq. is a partner of Lowenstein Sandler LLP in the firm's bankruptcy, financial reorganization and creditors' rights group. Bruce has more than thirty years' experience in the bankruptcy, restructuring and insolvency field and is a recognized national expert on trade creditor rights and the representation of trade creditors in bankruptcy, insolvency and other legal matters.. He 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 trustee and previously represented the creditors' committee in the Borders chapter 11 case. Bruce is co-chair of the Avoiding Powers Committee that is working with the American Bankruptcy Institute's Commission to Study the Reform of Chapter 11 and also participated in ABI's Great Debates at their 2010 Annual Spring Meeting, arguing against repeal of the special BAPCPA protections for goods providers and commercial lessors, and was a panelist for a session sponsored by the ABI and co-sponsored by Georgetown University Law Center. He is also a member of ABI's Board of Directors and is a former Co-Chair of ABI's Unsecured Trade Creditor Committee. He is also the author of ABI's Trade Creditor Remedies Manual: Trade Creditor Rights under the UCC and Bankruptcy Code and contributes to ABI Journal's Last in Line Column . Bruce is also a member of NACM's Government Affairs Committee, is a regular contributor to NACM's Business Credit, is a contributing editor of NACM's Manual of Credit and Commercial Laws, and has co-authored The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: an Overhaul of U.S. Bankruptcy Law, published by NACM. He also spoke at the 4th China International Credit and Risk Management Conference on the People's Republic of China's 2006 Law on Enterprise Bankruptcy. In 2011, Bruce received the Top Hat award, a prestigious award honoring professionals in the credit industry. He received his BA from the University of Rochester, his JD from the University of Pennsylvania Law School and his MBA from the Wharton School of Finance and Business.

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