Critical Vendor Status in Bankruptcy | Practical Law

Critical Vendor Status in Bankruptcy | Practical Law

This Practice Note describes critical vendor treatment in bankruptcy, including the debate over the doctrine, its statutory basis, the various standards for critical vendor status, and elements of critical vendor orders and motions. This Note also discusses critical vendors' exposure to preference risk, potential disgorgement of critical vendor payments, the impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) on obtaining critical vendor status, and strategies for critical vendors.

Critical Vendor Status in Bankruptcy

Practical Law Practice Note 1-518-9996 (Approx. 34 pages)

Critical Vendor Status in Bankruptcy

by Practical Law Bankruptcy & Restructuring and Practical Law Finance
Maintained • USA (National/Federal)
This Practice Note describes critical vendor treatment in bankruptcy, including the debate over the doctrine, its statutory basis, the various standards for critical vendor status, and elements of critical vendor orders and motions. This Note also discusses critical vendors' exposure to preference risk, potential disgorgement of critical vendor payments, the impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) on obtaining critical vendor status, and strategies for critical vendors.