Bankruptcy Discharge Trumps PACA, But Does It Really?

In a case of first impression, the 11th Circuit Court of Appeals ruled in Spring Valley Produce, Inc. et al. vs. Forrest, ____ F.3d____(11th Cir. Case Number 21-12133) on August 31, 2022, that the right to a discharge in bankruptcy trumps the longstanding language of the Perishable Agricultural Commodities Act (“PACA”)(7 U.S.C. §499a-499t) which purports to bar bankruptcy relief under theories of fiduciary duties owed to certain sellers of agricultural products. PACA was first enacted […]

By | September 3rd, 2022 ||

Rethinking Bankruptcy: The Importance Of Focusing On Technology

Bankruptcy is a formal process geared toward preserving stakeholder value. Often, the proceedings include negotiations between stakeholders that are arduous, time-consuming and expensive. As such, the main focus during bankruptcy tends to be on completing the process, rather than positioning the company for healthy and sustainable growth after emergence.

This limited focus is certainly understandable, given all the pressures and constraints that accompany bankruptcy. And it is amplified by the rise of pre-packaged and pre-arranged […]

By | September 1st, 2022 ||

Best Practices To Limit Preference Liability Exposure In Bankruptcy

As the saying goes, what goes up, must come down. After years of robust growth, the U.S. economy appears to be hitting a rough patch. In the coming months, it is likely that some businesses will not survive the challenges that lie ahead, and will be forced to file bankruptcy.

As bankruptcy attorneys, we find that one of the most difficult issues to explain to a client is receipt of a demand letter from a […]

By | August 25th, 2022 ||