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• The Preference Action, the Trade Vendor, and the Contemporaneous Exchange Defense ( February 2005 )
  Elihu Ezekiel Allinson of Potter Anderson & Corroon LLP

  Here's a scenario that may be all too familiar. A key customer has been steadily falling further and further behind on its account. You delicately begin to enforce existing credit limits, walking the fine line between trying to spur collections and keeping the customer happy. You check with a few of the credit agencies and learn that despite a recent large infusion of capital from its lenders the customer is experiencing significant cash flow problems. Slowly it dawns on you. Your key customer is becoming the albatross around your neck.

• Understanding Bankruptcy Preference Law Just Saved My Business a Bunch of Money ( October 2004 )
  Andrew David Stosberg of Greenebaum Doll & McDonald PLLC

  A popular, nationally-known insurance company advertises that it can save its audience/customer base "a bunch of money" if they takes fifteen minutes of their time to analyze their present insurance costs. Like this insurance company, businesses that extend unsecured trade credit to their customers can save a bunch of money by educating themselves about the bankruptcy laws concerning preferential transfers.

• The Brave New World of Preference Litigation: An analysis of Section 547 of the Bankruptcy Code ( June 2004 )
  William A. Hazeltine and Madison L. Cashman of Potter Anderson & Corroon LLP

  Within the past five years the world of preference litigation, suits by a debtor against its creditors seeking avoidance and recovery of transfers made within 90 days of a bankruptcy filing pursuant to sections 547 and 550 of the United States Bankruptcy Code. Because Delaware Bankruptcy courts see the lion's share of "mega cases," it should be no surprise that Delaware lawyers must of necessity become adept at navigating the treacherous and often murky waters of preference litigation.

• Payments Made to Secured Creditors May Be Considered Preferential Where the Secured Creditor Has a Floating Lien and is Undersecured ( November 2001 )
  Akin Gump Strauss Hauer & Feld LLP

  Payments made to creditors in the 90 days preceding a bankruptcy case may be avoided as preferential under Section 547 of the Bankruptcy Code if certain conditions are met. One of the conditions is that the transfer enables the creditor to receive more than the creditor would receive if: (a) the case were a case under Chapter 7 of the Bankruptcy Code; (b) the transfer had not been made; and (c) the creditor received payment of the debt to the extent provided by the Bankruptcy Code.

• When the going gets tough for your customers, the tough creditor gets going ( November 2000 )
  Christine L. Myatt of Nexsen Pruet, LLC

  This article reviews how a company can protect itself if one of it's customers is going through bankrupcty.

• Financial Services Report--Fall 1998 ( September 1998 )
  Wayne P.J. McArdle and Christopher S. Strickland of Paul, Hastings, Janofsky & Walker LLP

  This Report discusses the Russian financial crisis, and recent developments in preference law under Bankruptcy Code section 547(c)(2).

• Revisions to the Bankruptcy Code Imminent ( November 1999 )
  Tydings & Rosenberg LLP

  On May 5, 1999, the House of Representatives approved legislation entitled H.R. 833, which, if approved by the Sena.

• Is Your Inventory Lien Enforceable? ( September 1999 )
  Jaffe Raitt Heuer & Weiss, P.C.

  Inventory lenders beware. A 1994 amendment to the Bankruptcy Code may turn the priority scheme on its head. S.