Description
Learn legal strategies and best practices available for use when working with financiallytroubled suppliers.The economic ripple effects of COVID19 have caused an increase in financial distress for many companies. When we think of financial distress, our first thought is often about customer defaults. But your suppliers’ financial problems can quickly become your own, creating supply chain disruptions and saddling your business with additional costs. This topic offers proactive steps for determining if you have suppliers in distress and explains legal strategies and best practices available for use when working with financiallytroubled suppliers. This material will also discuss how to prepare for the potential bankruptcy of a supplier and your potential options and rights in the case that a supplier seeks bankruptcy protection.
Date: 2021-02-25 Start Time: End Time:
Learning Objectives
Risks Presented by Distressed Suppliers
• Barriers to Resourcing
• Costs of Resourcing
• Special Issues for Certain Industries
Supplier Review
• Determine Key Suppliers
• Steps to Review Suppliers
• Difficulties in Obtaining Financials
• Credit Reporting
• Quality and Warranty Programs
• Access to Facilities and Inspection Rights
• Other Information Sources and Red Flags
Contractual Terms and Conditions
• Contract Requirements
• Ability to Transition and Time Requirements
• IP, Tooling and Equipment Issues
Adequate Assurance for Critical Supplier
• UCC 2-609
• Potential Issues and Drawbacks in Demand for Adequate Assurance
Modifying Contractual Terms
• Timing
• Leverage
Other Pre-Bankruptcy Strategies
• Parts Bank
• Re-Sourcing
• Financial Support With Access and Accommodation Arrangement
Strategies During Supplier Bankruptcy
• Understanding the Automatic Stay
• Monitoring Supplier’s Bankruptcy
• Supplier Rights to Assume or Reject Contracts
• Actions That Do Not Violate the Automatic Stay
• Bankruptcy Court Assistance
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,ISM ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jonathan E. Lauderbach-Warner Norcross + Judd LLP
