Credit Risk Mitigation
As a result of recent economic turbulence, companies are increasingly being faced with legal challenges when vendors, clients and competitors suffer financial distress or file for bankruptcy. Given this reality, in-house legal counsel and credit managers can benefit substantially from having a strong working understanding of the effect of a client or vendor bankruptcy on their risk profile and bottom line.
Having the tools to anticipate potential insolvency or bankruptcy issues involving a vendor or customer allows companies and individuals the opportunity to mitigate or eliminate bankruptcy related losses. We advise parties, including Fortune 500 companies, on:
Strategies for identifying distressed counterparties at an early stage
Restructuring troubled counterparty relationships before a bankruptcy or insolvency event to mitigate collection risk
Negotiating valuable credit enhancements to better position our clients against future bankruptcy events
These strategies, when successfully implemented, allow our clients to safely do business with distressed parties, while minimizing the disruption and financial risk typically associated with a vendor or customer bankruptcy filing.