Bankruptcy Red Flags: Identifying and Responding to Troubled Customers Heading Towards Bankruptcy
This program discusses the warning signs of troubled companies at risk of a future bankruptcy filing and the available sources of information from which creditors can learn about these warning signs. There will also be a discussion of the questions to ask and information to obtain from a financially distressed privately held customer.
Credit grantors will also learn how they can use this information to negotiate for protection from the risk of nonpayment from, or otherwise avail themselves of the many useful tools that are available to enhance the likelihood of payment of claims against, a struggling customer. These tools include exercising their contractual Uniform Commercial Code and other state law rights enabling a switch from contractual credit to cash terms, enforcing their contractual and state law rights, including set off and lien rights, and obtaining additional credit support, such as a letter of credit, credit insurance, put, guaranty and purchase money security interest/consignment protection, all with the goal of reducing their risk of loss when bankruptcy hits.