About the Course
Introduction
This CLE course will examine the remedies available to suppliers who have delivered or are delivering goods to financially distressed buyers in the supply chain. The panel will discuss the rights and remedies available under Article 2 of the Uniform Commercial Code (UCC) and steps to take if the buyer files for bankruptcy.
Description
Suppliers of goods have various rights and remedies to minimize risk and maximize recovery when selling to financially troubled customers. While these options are helpful under normal circumstances, the current tariff regime and turbulent geopolitical environment present challenges throughout the supply chain, including customers—both large and small—that warrant extra attention from suppliers. UCC Article 2 offers certain protections that apply to all contracts involving the sale of goods, even if not in the contract or purchase order terms.
Upon reasonable grounds for insecurity, a seller can demand adequate assurance of performance from a financially distressed buyer before proceeding with delivery. Article 2 also permits a seller of goods, upon discovering that its buyer is insolvent while the products are in transit, to stop delivery of those goods.
After goods are delivered, the seller has the right to recover possession of products sold to a buyer that the buyer received while insolvent or within 10 days before filing for bankruptcy. Counsel must understand the nuances of these remedies and the notice and demand requirements associated with each.
The current tariff situation and geopolitical climate present unique challenges impacting the entire supply chain. The leverage one supplier utilizes against its customers might similarly be used by the supplier's suppliers. Suppliers may want to seek ways to balance risk mitigation with the desire to help the customer survive its current financial distress so a business relationship can be maintained going forward.
Listen as our authoritative panel discusses the remedies available to suppliers concerning insolvent or financially distressed buyers and factors to consider in the current economic environment.
Presented By
Mr. Fawkes practices in the areas of bankruptcy, creditors’ rights, and financial restructuring. He represents official committees, unsecured and secured creditors, debtors, financial institutions, post-confirmation trustees, and asset purchasers in chapter 11 and chapter 7 bankruptcy cases, out-of-court restructurings, and liquidation proceedings throughout the United States. Mr. Fawkes has represented clients in matters including plan confirmations, preference, fraudulent transfer and other bankruptcy litigation, cash collateral and debtor-in-possession financing, section 363 sale transactions, real estate and equipment leasing disputes, and claims reconciliation. He also assists clients in structuring their commercial transactions to mitigate the risk of future bankruptcy and insolvency issues. Mr. Fawkes has particular experience representing official committees of unsecured creditors, with over fifty such representations across the United States and across a wide variety of industries, including restaurants, foodservice and grocery stores, agriculture, manufacturing, distribution, mining, and real estate development.
Mr. Jackiw represents both plaintiffs and defendants nationwide in bankruptcy and commercial litigation, including avoidance actions, complex bankruptcy claim disputes, breach of fiduciary duty actions, and bankruptcy fraud litigation. He has prosecuted millions of dollars of preference litigation claims on behalf of liquidating trustees and chapter 7 trustees, and he has defended hundreds of preference and fraudulent transfer claims on behalf of individual defendants in jurisdictions throughout the United States. In addition to his experience in bankruptcy courts, Mr. Jackiw assists clients in general collection and commercial law litigation.
Mr. Torf is a partner in Ice Miller’s Bankruptcy and Financial Restructuring Group. He focuses his practice on helping companies dealing with financially troubled customers and other counterparties to maximize their recovery and minimize their risk.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, September 25, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Overview: current supply chain issues and developments
II. UCC Article 2 and delivery of goods in the supply chain
III. Adequate assurance and "reasonable grounds for insecurity"
IV. Stoppage of delivery of goods in transit
V. Reclamation
VI. Exercising UCC remedies in the current environment
VII. Practitioner pointers
The panel will review these and other key issues:
- How are tariffs and the current geopolitical environment impacting supply chains?
- What constitutes reasonable grounds for insecurity as well as adequate assurance under Article 2?
- What are the notice requirements to stop delivery? Why is timing so critical?
- How should a supplier exercise its right of reclamation after a purchaser has filed for bankruptcy?
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