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Bankruptcy Regulation

Wrestling With the Meaning of ‘Ordinary’ Under the Bankruptcy Code

The Bankruptcy Code protects regular, ordinary commercial transactions between distressed companies and vendors willing to continue the relationship. But what is ordinary?


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It is impossible to predict whether supply chain disruptions caused by the COVID pandemic, increased interest rates, market volatility, changes in workforce trends, inflationary pressures, and geopolitical upheaval will lead to a recession and wave of bankruptcies. Regardless, certain sectors and businesses undoubtedly will experience distress, and doing business with distressed customers always brings the risk of nonpayment.

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