goods or services without payment, and (5) stop deliveries altogether or demand
COD or other payment term modifications when a buyer is found to be insolvent
or as a condition for provision of goods or services after a bankruptcy is filed.
There are issues with all of these remedies and a thorough review of all options
with competent bankruptcy counsel is recommended before action is taken.
Nonetheless, the price of inaction can be dramatic so the watch word for any
supplier to an E&P is to remain ever diligent in dealings with customers in an
economically distressed economy.
ABOUT THE AUTHORS
Michael Viscount and Raymond Patella are each partners
in the Financial Restructuring and Bankruptcy Department
of Fox Rothschild LLP. Both are commercial lawyers with
many years of experience representing public and private
businesses and creditors' groups in matters involving
business debt restructuring, workouts, bankruptcies, and
other complex commercial deals. Michael can be reached at
609.572.2227 and at mviscount@foxrothschild.com.
Ray can be reached at 609.572.2254 and at
rpatella@foxrothschild.com.
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