When a key customer, supplier or business partner begins showing signs of financial distress, many companies assume their options are limited. In this article, Calfee Partner Andy Owen explores practical strategies creditors can use to protect their interests, both before and after a distressed business files for bankruptcy. Drawing on bankruptcy law and real-world insolvency issues, he examines when an involuntary bankruptcy filing may be an effective tool and highlights lesser-known avenues for maximizing potential recovery.
The article also discusses how directors, officers and controlling stakeholders of struggling companies can face heightened fiduciary obligations as insolvency approaches, creating potential opportunities for creditor recoveries in certain circumstances. Business leaders, lenders and financial professionals will gain valuable insight into recognizing warning signs, evaluating available remedies and taking proactive steps to preserve recoveries when a business relationship is at risk.
Interested in learning how creditors can strengthen their position before and during a bankruptcy proceeding? Request the full article for an in-depth discussion of these important strategies and considerations.
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