Buffalo Annual Meeting | May 9

The administrative cost of bankruptcy and the expanded rights granted to certain classes of creditors in bankruptcy cases makes bankruptcy a less viable alternative for many financially distressed companies, particularly smaller ones. As a result, companies seeking to address liquidity issues are increasingly turning to alternatives to bankruptcy—such as receiverships, assignments for the benefit of creditors (ABC), Uniform Commercial Code Article 9 sales, out-of-court foreclosures, or simply closing down the business. Some of these vehicles, when handled correctly, may produce a faster and greater distribution for creditors than would have occurred in a more expensive and slower bankruptcy case. This program covers these non-bankruptcy alternatives, how they differ from bankruptcy cases, how trade creditors should respond if a customer pursues any of these alternatives, and possible preference risk raised in ABCs and receiverships.