Fear a key customer will file for bankruptcy? Webinar will tell you how to act before it happens – ROI-NJ.com

Your vendor or key customer files for bankruptcy. What do you do?

Heres what you dont do: Wait until that moment and send a note to your lawyer, asking them to file a proof of claim. It wont be worth much.

Unfortunately, for many companies, thats the only option they have. But it doesnt have to be that way.

So said Rob Nies and Sam Della Fera, the co-chairs of the Bankruptcy and Creditors Rights Group at Chiesa Shahinian & Giantomasi, who will be hosting a webinar on the subject on Oct. 26 (register here).

Nies and Della Fera advise that the time to make the call is when you suspect your vendor or customer is headed for bankruptcy (and there are plenty of warning signs for that).

The pair would then instruct their clients to restructure their agreements before bankruptcy hits and do it in a way that ensures you get paid first.

It may sound easy and obvious but not everyone does it.

Nies gave a recent example where their client, who operates warehouses, benefited during the bankruptcy of a retailer. Working with the client, Nies put language in the contract that would allow a court to find that it was an executory contract, and therefore, the warehouser falls into a different category than an unsecured creditor.

The result: The owners of the warehouse were fully reimbursed the millions they were owed, while others received only pennies on the dollar.

Nies and Della Fera will discuss all this and more during a webinar that will show steps companies can take, including:

The one thing it wont do? Tell you what to do after a bankruptcy is declared. By then, its often too late.

Our objective is always to maximize recovery to distinguish the clients claim from all other unsecured creditors, such that you get paid, Nies said.

Register for the webinar, which is free, here.

ROI-NJ will serve as the moderator.

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Fear a key customer will file for bankruptcy? Webinar will tell you how to act before it happens - ROI-NJ.com