A U.S. company doing business globally will inevitably encounter issues with its foreign customers or counter-parties in the supply chain. Such issues include a foreign insolvency proceeding of such customer or counter-party in their “home” country. Since there is no uniform global insolvency law, the outcome for the U.S. company is primarily dependent on the insolvency law in the foreign jurisdiction, which will be quite different from Chapter 11, the primary insolvency law in the U.S.
David Conaway is the Chair of Shumaker’s Bankruptcy, Insolvency and Creditors’ Rights Practice and Co-Chair of Shumaker Global and Shumaker Manufacturing. His focus is representing manufacturing companies regarding a variety of issues involving customers and the supply chain, including commercial and financial contracts, disputes, insolvency; and cross-border transactions, litigation and insolvency. David advises clients and handles matters throughout the U.S. and represents numerous foreign-based clients regarding U.S. issues, and U.S. companies doing business globally.