On Tue, 16 Dec 2008 00:11:00 +0000, Mark Rand
wrote:

On Mon, 15 Dec 2008 17:38:02 -0500, Wes wrote:



And if a vendor is very hard nosed, demands payment to get a tool or other product
delivered to GM/Ford/Chrysler near near when they go into Chapter 11, the courts can reach
out and snatch back the money the vendor recieved.

Wes


On what grounds? I thought it was normal practice to not extend credit terms
to customers that were bad payers or poor credit risks. Certainly had that
happen to my employer in the past.


Mark Rand
RTFM


Hey Mark,

I'm not a lawyer, or even much of a business man, but I can see why
"(On what grounds?)" the courts would do so.

If you were in a failing business, then you would want to "get out"
with as much as you could. Just human nature.

So, still having the power to do so prior to filing Chapter??, pay all
the liquidity you can gather to some sort of "preferred customer"
invoice(s). How about a LOVING wife, although I bet that's a hard one
to find while the hubby has now "fuggedup my whole fugginlife with
this stupid fugginbusiness!!" Or maybe a trusted brother (but NEVER
the B-I-L!!), or even another company in which the business owner has
some real or future interest ("Hi Jack!! I'm considering retiring and
I'm cashing out...how about letting me put an investment in your
company by selling me part of YOUR business Jack? I'll make you a
great special deal!!", Or maybe allow the employees to steal the
company blind until the day the doors close (ever go to a tool & die
shop bankruptcy auction??----rarely ever any "decent" small stuff left
in the building..if it was portable and working, it's gone!!). Or
how about making an "on-account" purchase from the local job-shop
supplier for say nice Gerstner tool boxes full of good stuff for all
the guys on the shop floor, and then "sell them" to the guys on a
"pay-weekly deductions" from pay-roll, so you pocket the payroll and
never pay the creditor 'cause you know you're going out. Or maybe
asking a creditor "If I can arrange to get YOU paid right now, can I
get a job there today?".....don't think that's not happening a lot
right now, only I bet everybody is scared that the company they might
leap to won't fare any better very soon.

Lots and lots of reasons, and none of them complicated. Just simple
understandable dishonesty. If you were a creditor, you'd be asking
"Where did it all go, and can we get any of it back??". And that's
what the courts ask too.

Take care. Merry Christmas from here, as the radio news this morning
announces another 400 jobs are lost today, bringing a three year total
to about 3500 from the community of 5000 next-door.

Brian Lawson,
Bothwell, Ontario.