Ignorance Is Not Bliss: Demystifying Executory Contracts in Bankruptcy Cases

By Charles M. Tatelbaum

An executory contract can create havoc for the unsuspecting counterparty. 

Most businesses are (reluctantly) required to deal with customers, suppliers and counterparties to agreements that enter bankruptcy proceedings, yet there is a great lack of knowledge as to how the concept of an executory contract can create havoc for the unsuspecting creditor/counterparty. Recent litigation in Delaware involving the sporting goods retailer Eastern Outfitters LLC (Eastern Mountain Sports and Bob’s Stores) points to some of the issues.

Lawyer Up: As Retail Bankruptcies Increase, Creditors Must Be Vigilant

By Charles M. Tatelbaum

Virtually no attention has been paid to what will soon be a big problem

While much has been written about the future of brick-and-mortar retailing as a result of the large number of retail bankruptcies during 2016 and even during the first weeks of 2017, virtually no attention has been paid to what will be a significant problem for creditors of those retailers that have sought bankruptcy court protection—even if some of the retail locations remain open.

ASSET PROTECTION PLANNING HAS SUFFERED A SIGNIFICANT SETBACK CREATING A MEANINGFUL OPPORTUNITY FOR CREDITORS

By Charles M. Tatelbaum

A recent decision and opinion by Bankruptcy Judge Robert A. Mark of the US Bankruptcy Court for the Southern District of Florida has created a potential nightmare and morass for those who seek to use asset protection vehicles as part of an overall estate plan or independently, and, at the same time, has created a new opportunity for creditors seeking to recover unpaid debts.

CONSUMER AND BUSINESS ALERT – BE CAREFUL OF THE FINE PRINT EVEN IN THE MOST INNOCULOUS AGREEMENTS

By Charles M. Tatelbaum

In our day-to-day business and personal activities, we often are asked to sign service and other innocuous agreements, both on line and in hard copy with clients and customers, where little time is spent reviewing exactly what is contained in the agreement. While in most cases, the significance of the agreements may not seem important at the time, should an issue arise where a dispute has been created, the so-called “fine print” can create innumerable problems and issues.

IS THE UNITED STATES ON THE EDGS OF ANOTHER FINANCIAL DOWNTURN?

By Charles M. Tatelbaum

For those that believe that U.S. stock market indicators are not the true measure of the health of the nation’s economy, a number of recent events have pointed out the fact that while unemployment may have been stabilized, the economy in the U.S. is far from stable and healthy on an overall basis. Those of us that have dealt with the perils and pitfalls of the erratic economy since prior to the 1980 recession where the prime rate of interest rose to over 20% and inflation was rampant recognize that some of the same type of indicators are present today which could foretell severe economic problems for the near future.