This is the final part of our three-part series on revenue clawbacks. The scenario: a customer or teaming partner goes bankrupt and then they (or a trustee) demand you return money they already paid you for services or goods duly rendered. In the first entry, we discussed the definition of preferences and the policy purpose of preference actions. In the second, we identified five specific actionable items to take to limit your exposure to them. In this finale to the series, we discuss critical steps that should be taken if you find yourself formally threatened with a preference action.
How the Stage Is Set for an Actual Preference Demand
Once your customer or teaming partner (debtor) declares bankruptcy, a trustee or lawyer for the debt…
Read the full article at: https://www.jdsupra.com/legalnews/protecting-your-company-against-revenue-9725602/
