Working With Creditor Clients

Creditors need efficient, cost effective representation that protects and asserts their interests and leverages any rights or advantages they may have based on ongoing business relations, security interests in general or specific debtor assets, including the debtor's cash collateral, or other rights to payment priority.

If it looks like a customer, client, or other party owing money to a creditor, might file bankruptcy, I advocate working with the creditor to determine any exposure to loss, determine how, if possible, to minimize that exposure by terminating or modifying the contract/relationship with the party, including securing cash collateral rights in the debtor's business assets, obtaining other security rights, obtaining third party guarantees, putting the debtor party on COD, and otherwise placing the client creditor in a better position in the event of a debtor's bankruptcy.

Once a bankruptcy is filed, I will file a claim for the creditor, review any ongoing litigation with the debtor, review the debtor's bankruptcy schedules, statement of financial affairs and other pertinent filings, evaluate the bankruptcy case and report to the client about the availability of debtor assets to pay creditors, the amount of client's debt recognized and reported by the creditor, whether there is a plan for liquidation or reorganization, how the debtor's plan will treat the debt owed to the client in terms of how much and when the creditor might receive payment.

Additional creditor services in a chapter 11 case may include joining a creditor's committee to more closely examine the case, examine the debtor's plan, and play a role in guiding the case to a successful conclusion for the creditor. Along the way I will support the client's claim if it is challenged, review periodic reports, including monthly financial operating reports, review the disclosure statement that supports the debtor's plan, review the plan itself, report on the apparent feasibility of the debtor's plan, file objections to the plan if required, advise the creditor on voting for or against the plan, and monitor the case after a plan is confirmed to insure payments are properly made.