What to do when it's too late: How to minimize your losses when you learn your customer may file for bankruptcy protection
Digital media and consumer electronics companies, like virtually all other industry sectors, are currently facing serious economic challenges. A common problem is that a major customer suddenly announces that it is in economic distress and has, or intends shortly, to file for bankruptcy protection.
I recently wrote an article that outlines strategies a supplier can take to minimize its losses in this situation. It is entitled "When It's Too Late: how to minimize losses when your U.S. customer files for bankruptcy", and was published in the April 2009 edition of APlus -- the official monthly of the Hong Kong Institute of Certified Public Accountants. While I wrote this article for an Asian audience, the principles would apply to any business dealing with a customer who has or is likely to file for bankruptcy in a U.S. court. You can view this article by clicking here.
I frequently represent businesses in Asia and Europe in litigation in U.S. courts. For example, I recently obtained a Federal Court judgment for $2.5 million, plus attorneys fees and costs, for an Asian public company, in a case involving contract and business tort claims.
David D. Johnson is a business lawyer whose practice focuses on litigation and other issues relating to digital media and consumer electronics companies. David can be contacted at (310) 785-5371 or DJohnson@jmbm.com.
