In the wake of the COVID-19 pandemic, we often are asked what our clients should do if a business counterparty (such as a vendor, customer or other contract counterparty) is suffering distress and may be contemplating filing for bankruptcy. It is, of course, impossible to anticipate every possible scenario, but our colleagues in the Restructuring and Insolvency group, Stephen D. Lerner, Karol K. Denniston, Christopher J. Giaimo, Norman N. Kinel, Peter R. Morrison, Jeffrey N. Rothleder, Mark A. Salzberg, and Kelly E. Singer, have prepared a very helpful client alert including several general “do’s and don’ts” to consider. Recognizing that the facts and circumstances differ as to each situation, as always, it is best to consult your restructuring advisors as soon as possible if you believe a business counterparty is suffering financial distress and may be close to bankruptcy. They will be able to tailor the advice to the specifics of the circumstances. Read the full client alert below:
