Bankruptcy has never been a popular subject, or at least never something to brag about, but the rap it's received recently from regulators, legislators and the press has been somewhat vicious. While legislators and debtors themselves may find these controversial precepts of the Bankruptcy Code unhelpful or perhaps even damning, unsecured creditors, often the lenders of last resort, still face the prospect of customers reorganizing, leading a creditor to believe that it could, in the end, still rely on this debtor for business. Mark Berman, a partner at Nixon Peabody LLP, noted, there are ways to get a better idea of whether or not a debtor will make it out of reorganization and continue to be a customer, or if they're just going to shut their doors. Knowledge of the debtor's economic standing and the ins and outs of their industry come into play when determining whether or not a debtor will reorganize or liquidate.
Liquidate or Rehabilitate? Jacob Barron Business Credit; May 2009; 111, 5; Docstoc pg. 6 Reproduced with permission of the cop
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