By Richard A. Walawender, Principle, Corporate Group Co-Leader, Miller Canfield
Many commentators have assumed that a party to a contract will be excused from performance if the coronavirus outbreak causes its inability to perform. But in order to be sure this would apply in a particular supply contract for the sale of goods, several factors need to be considered, depending on the nature of the supply contract involved.
Scenario 1: Contract has no force majeure provision
If the supply contract does not contain a force majeure provision, and nothing in the contract states that one party assumes the risk of not being able to perform (as may be the case in a “take-or-pay” contract), then § 2-615 of the Uniform Commercial Code (UCC) is available as a defense against a claim of breach for failure to supply goods.… Read the rest
Dear NACM CS Members,
We’re experiencing an extraordinary moment in our country and around the world – an instance where day-to-day activities and routines, both within our personal and professional lives, have been shuttered and extremely altered. What has become strikingly apparent, is the current situation with COVID-19 is fluid and information is changing by the hour or even the moment. It’s challenging to make any personal or business decisions that aren’t in question with the next hour’s developments. Rightfully, we share a collective apprehension of what was once a normal or routine business day. And, like you, we’re entirely focused on the safety and well-being of our staff, member companies, and anyone in our communities.… Read the rest
Written by: Keith Prather, Managing Director, Armada Corporate Intelligence
It is far too easy to say that these are “unprecedented times simply” and “we’ve never seen this before.” Depending on what economic or societal metrics one looks at, we can point to any number of major ‘catastrophic’ times in the country’s history and make an argument that this is the first time since those events (Great Recession, Great Depression, 1918 Spanish Flu, 1987 stock market sell-off, etc.) that we’ve seen this or that happen.
For instance, the Empire State Manufacturing report for March had the largest month-over-month decline in the history of the metric. There has been any number of record-breaking single-day point swings in the stock market.… Read the rest
By Brett Hanft, CBA, American Int’l Forest Prod LLC, CFDD National Chairman
The Credit and Financial Development Division (CFDD) is an organization dedicated to providing its membership with a focus on continuing education, networking, and leadership growth for credit and finance professionals.
As a member of the CFDD Portland Chapter for 31 years, I can attest to the personal and professional growth I’ve experienced and achieved as a direct result of my active participation and involvement in CFDD. From humble beginnings where I began attending meetings to meet and network with other credit ‘peers,’ I quickly realized the value of how my engagement and involvement in this professional group would help me gain valuable knowledge, education, and insight into the world of credit and finance.… Read the rest
ON-TIME. SLOW PAY. DELINQUENT.
With the ups and downs of the economy, we never know what may be coming next. Data Contribution allows NACM members to work together to manage risk.
When companies report, whether times are good or bad, it helps everyone make better credit decisions. We invite you to begin sharing your firm’s credit experience now so you are prepared for whatever lies ahead.
Meet “Best in Class” Corporate Standards
A lack of information interferes with the ability of a business to make a sound, accurate, and equitable credit decision. Sharing of credit data is an important part of being an active member of the credit community. If every business around the world reported data, commerce would grow.… Read the rest
January is always a good producer of a Winter Wonderland up in the Inland Northwest! I’m nestled in with a hot cup of tea and looking out the window to an accumulation of more than a foot of snow. Outside of the constant shoveling, frozen outside hoses, and driving challenges, the blanket of snow leaves a quiet and peaceful serene that I enjoy this time of year. This is an excellent time to get caught up on long-overdue readings and sharpen my professional knowledge.
Did you ever stop to realize nearly everything has an expiration date? Being educated and staying on top of your professional game has one of the longest expirations you can find for yourself. … Read the rest
Written By: David Conaway, Partner, Shumaker Attorneys at Law
The “Small Business Reorganization Act of 2019” (SBRA) signed into law on August 23, 2019 contains two amendments to Chapter 11 preference laws, which are NOT limited to small business reorganizations.
1 – Debtors’ Burden of Proof.
… Read the rest
- As creditors who have been on the wrong end of preference claims under Section 547 of the Bankruptcy Code know all too well, debtors’ burden to assert preference claims is minimal, a lay-up. The burden quickly shifts to the creditor to establish its defenses under Section 547(c) of the Bankruptcy Code.
- With SBRA, debtors now have an additional hurdle before asserting preference claims. A debtor/trustee may avoid a preference payment “based on reasonable due diligence in the circumstances of the case and taking into account a party’s known or reasonably knowable affirmative defenses .