The Interplay Between Vendor Finance Agreements and Bankruptcy

While regularly used among lenders, manufacturers, and dealers, treatment of Inventory financing program agreements in bankruptcy is not uniform, and uncertainty exists with respect to how such agreements may be treated in the context of a manufacturer's Chapter 11.

9 minute read July 01, 2022 at 12:03 AM
By
Ann Pille, Richard Tannenbaum, Alexis Leventhal and Emily Costantinou
The Interplay Between Vendor Finance Agreements and Bankruptcy

Consider the following: a lender and manufacturer enter into an inventory financing program for dealers of the manufacturer's products.

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