When you offer credit to a customer, the last thing you want is to eventually turn that customer over to a collection agency. Unfortunately, collections are an inevitable part of the commercial credit game, and some of your accounts are going to reach this endpoint from time to time. Working with a good collection agency […]Continue reading "Customary Business Practices for Turning a Debt over to a Collection Agency"
As we move into 2021, it’s safe to say that no one has a good handle on the world’s economy. Sure, there are plenty of opinions, and you may have your theories, but 2020 taught us that we don’t know as much about the future as we previously believed. So, when it comes to risk […]Continue reading "Risk Management in 2021: How the World’s Volatility is Changing the Landscape"
Written by David Conaway, Attorney at Law, Shumaker We are closely following Revlon on behalf of several creditor interests. In the context of Revlon’s series of complex re-financings and roll-up transactions in May 2020, human error caused a $500 million loss for Citibank. On February 16, 2021, in the case of In re Citibank August […]Continue reading "A “Black Swan Event”: New York Federal Court Rules that Lenders are Entitled to Keep $500 Million Mistakenly Paid by Citibank"
Collecting on delinquent accounts is a challenge. For home furnishings suppliers, it’s important to build and maintain positive relationships with retail partners – and collecting on an account is only going to serve to strain that relationship. Unfortunately, there will reach a point with some of your accounts where collecting is the only option. In […]Continue reading "What Information Should You Gather on Delinquent Accounts Before Collecting?"
As a furniture manufacturer, offering furniture credit to your customers is a necessity. Retailers who want to sell your products will not always have the cash on hand to purchase inventory, so establishing credit terms can help all parties. Of course, this only works out when you make sound credit decisions. If you fall into […]Continue reading "Top 5 Ways NOT to Make Dumb Furniture Credit Decisions"
Bankruptcy Code Temporarily Tilts in Favor of Supplier and Landlord Preference Defendants Written by Ronald D.P. Bruckmann of Shumaker, Associate. firstname.lastname@example.org For a limited time only, the “Consolidated Appropriations Act, 2021” (CCA) signed into law on December 27, 2020 amends Bankruptcy Code Section 547 to shield certain deferred supplier and rent payments from avoidance as […]Continue reading "Bankruptcy Code Temporarily Tilts in Favor of Supplier and Landlord Preference Defendants"
Chapter 11 Filings Surge: Winning Solutions for Suppliers in a Zero-Sum Game -Written by David Conaway, Attorney at Law, Shumaker, email@example.com According to the American Bankruptcy Institute, 3,600 companies filed Chapter 11 in the first half of 2020. Chapter 11 filings for 2020 are on pace to eclipse any year since 2012. During the same […]Continue reading "Chapter 11 Filings Surge: Winning Solutions for Suppliers in a Zero-Sum Game"
Traditional Collection Agency Vs. Member-Owned Collections What do Neimen Marcus, Stein Mart, and JCPenny all have in common? They each filed Chapter 11 bankruptcy this year (Neiman, luckily, emerged from it). As a credit manager, it is important to keep abreast of the latest trends in retail so you can make smart credit decisions. And […]Continue reading "Traditional Collection Agency Vs. Member-Owned Collections Services"
Trade creditors enter into consignment arrangements with their financially distressed customers to increase the likelihood of payment of their claims.Continue reading "Consignment the Wrong Way: Recovery Still Possible"
In managing credit risk with an insolvent customer, the seasoned credit team also appreciates not just the A/R risk, but the preference risk should the customer […]Continue reading "Supply Chain Preference Releases in Chapter 11 Retail Cases"