Consider the following: a lender and manufacturer enter into an inventory financing program for dealers of the manufacturer's products. Pursuant to the agreement reached between the manufacturer and the lender,
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.

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