Calfee Connections

As companies approach insolvency, attention often shifts beyond corporate assets and toward those responsible for managing the business. Directors and officers owe fiduciary duties that can become increasingly significant during periods of financial distress.

This eight-part blog series explores key issues businesses should consider when a business partner's financial condition begins to deteriorate.

When a customer or business partner begins experiencing financial difficulties, the most important decisions are often made before any bankruptcy filing occurs. Proactive planning can significantly improve a creditor's position.

This eight-part blog series explores key issues businesses should consider when a business partner's financial condition begins to deteriorate.

Most business leaders are familiar with voluntary bankruptcy, where a company chooses to seek protection under the Bankruptcy Code. Fewer understand that creditors themselves may, under certain circumstances, force a financially troubled business into bankruptcy. Known as an involuntary bankruptcy, this remedy is powerful but should be used cautiously.

This eight-part blog series explores key issues businesses should consider when a business partner's financial condition begins to deteriorate.

When a business partner begins experiencing financial difficulty, many companies make the mistake of waiting too long to act. By the time a bankruptcy filing occurs, creditors often discover that many of their options have narrowed considerably. Recognizing the warning signs of financial distress early can help businesses preserve their rights, protect their interests, and improve the likelihood of recovering monies owed.

This eight-part blog series explores key issues businesses should consider when a business partner's financial condition begins to deteriorate.

Economic uncertainty can create challenges for even the healthiest businesses. As market conditions shift, companies may find themselves confronting a difficult reality: a customer, vendor, borrower, supplier, or other valued business partner is experiencing financial distress. When that occurs, the questions come quickly. How can a business protect itself? What actions should be taken before a bankruptcy filing? Are there opportunities to improve recovery if bankruptcy becomes unavoidable?

This eight-part blog series explores key issues businesses should consider when a business partner's financial condition begins to deteriorate.