Avoiding The Bankruptcy Black Hole In Construction

Law360, New York (November 24, 2008, 12:00 AM EST) -- With the residential real estate market in crisis, and the commercial market likely to follow, bankruptcy practitioners anticipate a steady flow of construction company bankruptcies.

When a contractor on a construction site goes into bankruptcy, the owner of the site and the general contractor will want to find ways to pay subs and suppliers of the debtor contractor (the "debtor"). The owner will want to avoid the perfection of liens against the property and the general contractor will have contractual obligations to the owner to get...
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