The Commercial Account Bankruptcy and the Surety’s Collateral

In this NASBP Virtual Seminar, Chad Schexnayder and Alana Porrazzo of Jennings Haug Keleher McLeod Waterfall LLP will take a deep dive into how a Chapter 11 bankruptcy can impact the surety’s collateral. They will discuss why timing matters when taking collateral pre-bankruptcy, practical strategies to protecting the surety’s collateral in bankruptcy, and some of key risks posed by bankruptcy sales and plans (and how to mitigate them).
• Types of collateral
• Indemnity agreements, collateral agreements, perfecting rights in collateral
• Timing matters
o Preference/indirect preference doctrines
• Surety credit/post-petition surety credit facility
• “Risk points”
o 363 Sales
o Plan Provisions
o Confirmation Order