Practice Areas

Bankruptcy proceedings are perhaps the most frustratingly unfair claims a logistics provider can be forced to confront.  With increasing frequency, a logistics entity – although often an innocent middleman – will face litigation in bankruptcy courts.  Such proceedings go far beyond merely a claim for unpaid bills.  Quite often the logistics provider will find itself the defendant in an adversary proceeding to recover money or property for the bankruptcy estate.  Since it often provides services on credit, the logistics provider may be in the unenviable position of having provided services, advanced costs for freight, duties and related charges, only to have the bankruptcy estate demand the return of any payments. Bankruptcy proceedings are often inevitable if the logistics provider is storing the cargo on behalf of the debtor. Even if the provider properly perfects its lien rights over the cargo, it may nevertheless face the threat of significant litigation expenses and even sanctions by the bankruptcy court.  The logistics provider may also be caught between a bankrupt buyer and an overseas seller, each of which demand the release of cargo in the provider’s possession.

Navigating through the waters of bankruptcy can be treacherous to the unwary.  It is vital to respond quickly and correctly.  Logistics providers should also have safeguards in place to avoid or minimize the threat of bankruptcy litigation, such as utilizing the proper documentation, scrutinizing its relationships with customers and vendors, and maintaining best practices. 

Bankruptcy proceedings, as they relate to the international transportation of cargo, are incredibly complex and involve aspects of international, national and local laws.  Resolving these multifaceted issues requires a unique understanding of the roles assumed by logistics entities against a backdrop of bankruptcy principles.  The attorneys in our bankruptcy practice possess the knowledge and experience to handle any situation, including lien rights, secured interests, third-party rights, adversary claims for recovery of assets, creditor’s rights, Uniform Commercial Code (UCC) issues, and overseas claims.  In addition, our attorneys can prepare the appropriate documents and design effective proactive measures to minimize the threat of bankruptcy litigation.