Strategies for Working With Your Customer in Chapter 11

This program is part of the Credit Research Foundation’s Credit & Accounts Receivable Open Forum.  James Stang and Jason Pomerantz will examine the interaction among a debtor, creditors’ committee, and secured creditors in the context of a chapter 11 bankruptcy case, addressing each parties’ powers and remedies at different stages of the case from commencement through confirmation of a chapter 11 plan. Issues for discussion will include:

• Prebankruptcy strategies: negotiation of DIP financing/use of cash collateral; interactions with the trade, including COD, prepayment, and security deposits; formation of ad-hoc committee; inventory hoarding; human resource issues.
• First-day motions and their impact on the case: formation of committee; impact of section 503(b)(9), PACA, and PASA on the debtor’s viability.
• Operations during chapter 11: assumption/rejection of executory contracts/leases; payments on real estate and personal property leases; committee monitoring role
• Adequate protection obligations: financial DIP covenants; real property lenders; identification and valuation of unencumbered assets.
• Conversion or confirmation: identification and quantification of administrative claims; confirmation standards; exit financing treatment of unsecured creditors from a trade creditor perspective: postconfirmation operations.

For more information, please visit the CRF website at