Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden...
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Transcript of Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden...
![Page 1: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/1.jpg)
Top 10 Issues:
Debtor Companies and
Customers of Debtor Companies
Eric SchultenoverWaller Lansden Dortch & Davis, [email protected]
Kevin W. Crumbo Kraft CPAs – Turnaround & Restructuring Group
![Page 2: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/2.jpg)
Top 10 Issues for Customers of Debtor Companies
1. Continuity of Supply
![Page 3: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/3.jpg)
Top 10 Issues for Customers of Debtor Companies
2. Support or Resource?
![Page 4: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/4.jpg)
Top 10 Issues for Customers of Debtor Companies
3. Support – How to Support
– Enhance credit to Supplier
– Purchase plants or operations from Supplier
– Debtor in possession financing
• What is it?
• Credit Bid
![Page 5: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/5.jpg)
Top 10 Issues for Customers of Debtor Companies
4. Support – Where to Support
– Inside of Bankruptcy
– Outside of Bankruptcy
• Access Agreements
• Segregation and Tagging of Tools, Equipment, Capital, Inventory, Raw
• Tooling Acknowledgements
• Purchase options
![Page 6: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/6.jpg)
Top 10 Issues for Customers of Debtor Companies
5. Support – When to Support
– Cost-benefit analysis
– Viable restructuring opportunity?
• Is this merely a financial issue or is it structural and operational
![Page 7: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/7.jpg)
Top 10 Issues for Customers of Debtor Companies
6. Resource – Ability to Resource (long-term “executory” contract v. no contract)
– Has there been a breach?
– Lead time for resourcing?
– Treatment of Executory Contracts in Bankruptcy
![Page 8: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/8.jpg)
Top 10 Issues for Customers of Debtor Companies
7. Resourcing Assistance – What do you need?
– Access
– Tools, Equipment, WIP, Raw
– Support
– Intellectual Property
![Page 9: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/9.jpg)
Top 10 Issues for Customers of Debtor Companies
8. Anti-trust
![Page 10: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/10.jpg)
Top 10 Issues for Customers of Debtor Companies
9. Customer programs and warranty issues during bankruptcy case
![Page 11: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/11.jpg)
Top 10 Issues for Customers of Debtor Companies
10. Speed
![Page 12: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/12.jpg)
Top 10 Issues for Debtor Companies
1. Restructure or Liquidate
![Page 13: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/13.jpg)
Top 10 Issues for Debtor Companies
2. Pre-bankruptcy planning– Preserve cash– Build inventory – Engage primary creditors (typically
secured)– Arrange DIP financing– Consider pre-packaged bankruptcy
• Often financial restructuring
![Page 14: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/14.jpg)
Top 10 Issues for Debtor Companies
3. Liquidate- Orderly wind down or Chapter 7?
![Page 15: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/15.jpg)
Top 10 Issues for Debtor Companies
4. Financing– Debtor-in-possession financing
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Top 10 Issues for Debtor Companies
5. Trade Creditors and Customers– Critical vendors– Customer programs
![Page 17: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/17.jpg)
Top 10 Issues for Debtor Companies
6. Chapter 11 - Sale as a going concern or plan of reorganization?
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Top 10 Issues for Debtor Companies
7. Sale – 363 sale process
![Page 19: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/19.jpg)
Top 10 Issues for Debtor Companies
8. Plan of Reorganization under 1129
![Page 20: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/20.jpg)
Top 10 Issues for Debtor Companies
9. Employees – Collective Bargaining Agreement?
![Page 21: Top 10 Issues: Debtor Companies and Customers of Debtor Companies Eric Schultenover Waller Lansden Dortch & Davis, LLP eric.schultenover@wallerlaw.com.](https://reader038.fdocuments.us/reader038/viewer/2022110319/56649c805503460f949372da/html5/thumbnails/21.jpg)
Top 10 Issues for Debtor Companies
10.Exit Issues– Exit financing– Customer issues – warranty claims