In response to the coronavirus (COVID-19) pandemic, many employers in various industries have been reducing hours and pay, or in many cases, closing their sites indefinitely. Employers can reference the article below for strategic ways to limit their liability when terminating or laying off employees during the coronavirus pandemic and contact Ice Miller LLP for additional information and assistance.

Ice Miller is carefully monitoring the rapidly changing developments of the coronavirus (COVID-19) pandemic. It is our goal to provide you with the most up-to-date information available, along with advice on best practices and strategies to minimize loss and maximize long-term financial stability.

Below are some strategies for assessing exposure and preparing and responding to bad debt, slow-paying or delinquent counter-parties, bankruptcies or related creditors' rights litigation. Note: The steps and strategies below should be pursued simultaneously despite the numbered steps.

Various rights and remedies exist for suppliers of goods that are not often utilized and frequently not even known to suppliers. If used and done properly, these rights and remedies are an excellent tool to help suppliers minimize risk and maximize recovery when selling to financially troubled customers.

An overview of how the coronavirus disease (COVID-19)impacts reorganization for small businesses.

In a recent decision, In re Black Diamond Mining Company, LLC,[1] the United States Court of Appeals for the Sixth Circuit held that a netting provision contained in a contract was enforceable against an assignee from one of the parties to the contract.  The decision is sound, and is worth noting by parties to contracts and by those parties that succeed to their rights

A recent decision of the Bankruptcy Appellate Panel of the First Circuit, Wheeling & Lake Erie Railway Company v. Keach,[1] ruled that a lender (Wheeling) did not have a perfected security interest in a business interruption insurance policy or its proceeds.  The decision in Wheeling is inconsistent with a prior court decision that dealt with business interruption insurance as proceeds of collateral and was more favorable to secured creditors, and therefore should be of concern to lenders.

Background

Whenever a UCC-3 termination statement is being filed, all parties need to carefully review such termination statement to make sure the termination statement is releasing the secured interests that the parties intend to be released.  Failing to diligently review termination statements can lead to the inadvertent release of a security interest that a secured party may not intend to release.