Bankruptcy Provisions in Contracts: Drafting Tips, Mitigating Risks, Enforcement Issues
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss bankruptcy provisions in executory commercial contracts. The panel will identify unenforceable provisions and provide drafting tips to insulate parties from the consequences of bankruptcy filings by the counterparties to their agreements.
- Review of common boilerplate bankruptcy provisions
- Ipso facto clauses
- Automatic stay waivers
- Bankruptcy provisions that require close scrutiny
- Strategies and drafting tips to minimize the negative effects of bankruptcy on contracts
- Shortening the agreed-upon term of the contract
- Stipulations and affidavits of fact
- Characterization of the transaction
- Forward contract treatment
- Exceptions for intellectual property contracts
- Other innovative forms of relief to include
- Lessons learned from caselaw interpreting bankruptcy contract provisions
- Practical considerations and key takeaways
The panel will review these and other key issues:
- What are examples of common unenforceable ipso facto clauses in contracts?
- What types of bankruptcy process references in contracts should be carefully scrutinized?
- What drafting techniques are available to minimize the negative effects of a contract counterparty's bankruptcy filing?
Morgan, Lewis & Bockius
Mr. Carter focuses his practice on cross-border insolvency matters, bankruptcy, complex litigation, and distressed debt... | Read More
Mr. Carter focuses his practice on cross-border insolvency matters, bankruptcy, complex litigation, and distressed debt claims trading matters. He has experience representing investors and lenders throughout the capital structure such as secured lenders, debtor-in-possession lenders, and bondholder groups in all aspects of restructuring including post-petition financing, claim and plan negotiations, adversary proceedings, and settlements.Close
Andrew J. Gallo
Partner, Co-Leader Bankruptcy, Restructuring and Insolvency Practice
Morgan, Lewis & Bockius
Both an accomplished trial lawyer and bankruptcy attorney, Mr. Gallo counsels secured and unsecured creditors, equity... | Read More
Both an accomplished trial lawyer and bankruptcy attorney, Mr. Gallo counsels secured and unsecured creditors, equity holders, and investors in bankruptcies and restructurings. He also litigates complex commercial cases in state and federal courts and arbitrations, with a specific focus on fraudulent transfer and creditor’s rights. Mr. Gallow has extensive experience representing clients in distressed situations relating to the energy industry and serves as co-leader of the firm’s energy industry team.Close