to determine the likely results with
regard to the debtor under each of
the insolvency regimes in which
insolvency proceedings could occur.
Phase three is the development of a
plan and course of action based on
the results from phases one and two
if the business elects to proceed.
If the insolvency proceedings involve
fraud and the transfer of assets to
other jurisdictions, the key is to obtain
the services of knowledgeable and
experienced experts in the field.
Otherwise, the costs stemming from
the selection of an individual with
little or no experience in the process
can substantial. The International
Chamber of Commerce FraudNet is an
organization of experts involved in fraud
and asset recovery. Various industries’
trade associations also may prove to
be excellent sources for information
regarding financially troubled customers.
Christopher J. Redmond is a partner in Husch
Blackwell LLP and located in the firm’s Kansas City,
Mo., office. He is a fellow of the American College of
Bankruptcy and the International Insolvency Institute,
and he serves as a member of the U.S. delegation to the
United Nations Commission on International Trade
Law (Insolvency Working Group V). Redmond is also a
member of the International Chamber of Commerce
FraudNet. He has served as counsel for receivers,
joint liquidators, and trustees in international
cross-border insolvency proceedings and has
acted as a gatekeeper for a number of years. In
addition, Redmond has served as a Chapter 11
and 7 trustee since 1978 and has been appointed
as an examiner in international cross-border
proceedings. He can be reached at 816-283-4672
or fraudulent issues that need to be
addressed as part of the engagement.
who is efficient, knowledgeable,
and cost-effective can help.
Unsecured creditors can band together
to hire a gatekeeper to act collectively
on their behalf to reduce the overall
costs of the proceedings. Conflict rules
must be carefully addressed, however,
because individual creditors may
have different exposure to preference
International trade generates additional
considerations that must be addressed
when a customer becomes insolvent or
ceases paying its bills and obligations.
A clear understanding of the issues and
the respective laws of the jurisdictions
involved must be developed, and
then a plan for effectuating recovery
must be executed. Often, a gatekeeper
In each international recovery action,
the business must make an economic
determination after being properly
informed as to what is reasonably
feasible, given all of the facts and
circumstances. Such a process can
enhance recovery, but more importantly
can provide a realistic evaluation for
the business to determine what course
of action, if any, it wants to pursue. J
When you call on Deloitte CRG to enhance business
performance, you get an experienced team of
professionals able to guide you through the process of
making the difficult decisions. And you get the added
boost of Deloitte’s deep resources, breadth of services,
and global footprint. So you can start improving your
business with more than a whisper.
To learn more, contact firstname.lastname@example.org
or visit www.deloitte.com/us/crg
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