Doing Business With A Customer In Bankruptcy

Law360, New York (May 7, 2007, 12:00 AM EDT) -- An issue that comes up for creditors when a customer files bankruptcy is whether to keep doing business or end the relationship.

Since debtors usually cannot survive without at least some level of trade support, generally they reach out to suppliers in an attempt to obtain trade terms, or at least a steady supply of goods, after a Chapter 11 bankruptcy is filed.

Often they put information about doing business in light of the bankruptcy (see this example from Delta Airlines) on a restructuring Web site...
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