Viscount Offers Insight into Rights of Suppliers for Franchising WorldJanuary 1, 2009
Michael Viscount contributed the article “Rights of Suppliers in an Economic Downturn” to the January 2009 edition of Franchising World.
The article offers insight into the rights of suppliers in bankruptcy and other insolvency situations. Says Viscount, “suppliers have a number of basic rights and remedies that can be used when operators are unable to pay in a timely manner and resort to filing for bankruptcy or other available relief from the credit crunch.”
Starting with a bankruptcy primer, Viscount goes on to describe potential supplier remedies, including recall of goods, reclamation, 20-day claims, and set off and recoupment. He also discusses post-petition shipments, and advises those doing business with companies in bankruptcy to “limit the credit balance and watch the payment cycle closely to make sure they do not extend beyond normal terms during the course of bankruptcy.”
To read the full article, visit http://www.franchise.org/Franchise-Industry-News-Detail.aspx?id=43876.