In re Innkeepers USA Trust, et al., -- B.R. --, 2011 WL 1206173 (Bankr. S.D.N.Y. 2011)
USA, New York, Banking, Insolvency & Restructuring, Litigation, Real Estate, Sullivan & Worcester LLP, Bond (finance), Debtor, Interest, Mortgage loan, Standing (law), Limited partnership, Debtor in possession, Preferred stock, Secured loan, Beneficial interest, Trustee, United States bankruptcy court, US District Court for the Southern District of New York
Parent company guarantees and performance bonds are typically used in the construction and engineering industries to provide a developer with some security in the event that the contractor breaches the building or engineering contract or, in some circumstances, upon the contractor's insolvency.
In the current economic climate, contractor default is, unfortunately, even more prevalent in the construction and engineering industries, and so the issues surrounding parent company guarantees and performance bonds are very much in focus for developers.
United Kingdom, Construction, Insolvency & Restructuring, Shepherd and Wedderburn LLP, Bond (finance), Surety, General contractor, Independent contractor, Breach of contract, Balance sheet, Default (finance), Parent company, Association of British Insurers