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Protecting Interests If Another Company Files for Bankruptcy
As the Boy Scouts say: “Be Prepared.” And in today's economic climate, that means prepare in advance ' when a contract is entered into ' to protect yourself in case the other entertainment-industry party declares bankruptcy. This requires a basic understanding of the extraordinary protections and rights that are afforded to debtors in a bankruptcy, particularly the right to void unperfected security interests (see the first installment of this article in the December 2008 issue of Entertainment Law & Finance) and to terminate executory contracts. So forewarned is forearmed.
Executory Contracts
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