Managing Commercial Relationships in Distressed Circumstances

    View Author June 2020

    In the wake of the COVID-19 pandemic, we are often asked what clients should do if a business counterparty (such as a vendor, customer or other contract counterparty) is suffering distress and may be contemplating, or be at risk of, falling into external administration. It is impossible to anticipate every potential scenario, but here are several general do’s and don’ts to consider.

    Recognising that the facts and circumstances differ as to each situation, it is best to consult your restructuring and insolvency (R&I) advisors as soon as possible if you believe a business counterparty is suffering financial distress and may be close to external administration.