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<a href="http://www.accessmylibrary.com/coms2/summary_0286-35122037_ITM" title="Facts and information about Out-of-court liquidations pose questions for credit professionals.(credit column)">Out-of-court liquidations pose questions for credit professionals.(credit column)</a>
Out-of-court liquidations pose questions for credit professionals.(credit column)
Business Credit
|
June 01, 2008 |
Thorne, Deborah |
COPYRIGHT 2008 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright
As the U.S. economy slips into or sits in a recession, numerous companies will be seeking liquidation or reorganization. (1) Credit professionals familiar with receiving notice of Chapter 7 and 11 cases may be uncertain as to what action should be taken upon hearing a rumor, or actually receiving notice, that a company is liquidating or restructuring out-of-court. Will there be a greater distribution on account of their claim in a bankruptcy? Is the debtor trying to hide something by liquidating or restructuring out of court? Should a vendor/creditor agree to the payment terms suggested by the debtor, push back or resort to an involuntary filing against the debtor?
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Source: HighBeam Research, Out-of-court liquidations pose questions for credit...