Richard Bixter, Jr., James Chivilo and Gregory Meeder | Holland & Knight A bankruptcy filing by a single construction project participant can cause a chain reaction in which payments aren’t met, leading to financial distress, impacts to project payment systems and completion schedules, and/or bankruptcy for other participants. In addition, the bankruptcy trustee administering the… Continue reading Preference Claims, Clawbacks in Bankruptcy Can Disrupt a Construction Project
Tag: Bankruptcy
When Construction Contracts Go Sideways in Bankruptcy
Tracy Green | California Construction Law Blog | February 10, 2017 The contractor on a project files a bankruptcy case. How should the property owner and subcontractors proceed? When a party to a contract files bankruptcy, the other party’s actions are constrained by the bankruptcy code. Types of Bankruptcies The typical bankruptcy case involves a… Continue reading When Construction Contracts Go Sideways in Bankruptcy
Bankruptcy by the Developer/Owner: Mechanics Lien Rights may still Prevail!
John W. Kim | Nossaman LLP | October 24, 2014 The rate of bankruptcies among construction industry participants is higher than some think. The bankruptcy of a developer creates an “automatic stay” under federal law preventing almost all collection activities, including actions to perfect a lien. However, there are unique exceptions to the automatic stay… Continue reading Bankruptcy by the Developer/Owner: Mechanics Lien Rights may still Prevail!