Documente Academic
Documente Profesional
Documente Cultură
Presenters
Charles A. Dale, Boston office, focuses his practice on matters of bankruptcy and insolvency with extensive experience in the construction industry.
Brian R. Davidson, Pittsburgh office, focuses in the area of complex commercial litigation with an emphasis on construction industry litigation.
Joseph B.C. Kluttz, Charlotte office, focuses on the structuring and restructuring of large financial transactions within construction and other industries to avoid and manage insolvency risk.
Andrew L. Swope, Harrisburg office, focuses in the area of complex commercial litigation with an emphasis in commercial, construction and bankruptcy law.
Basic Facts
200 Million Dollar Ethanol Plant Project Specific Owner EPC Contractor Major Subcontractors / Suppliers Project Partially Financed Remaining Financing to be Obtained During Construction Fast Track to Meet Peak Season Demand Performance / Payment Bonds Owner Letters of Credit Parental Guarantee from Owner Various Forms of Insurance
Scenario 1
Owner Learns About Problems on the Project Two Major Subcontractors Have Not Been Paid for Two Months and are Threatening to File Liens One Major Equipment Supplier Behind Schedule and Unwilling to Complete Fabrication Absent Substantial Advance Payment Due to Cash Flow Problems Unrelated to the Project
Scenario 2
Major Equipment Supplier Goes Bankrupt Absent Delivery of the Equipment, the Project Will be Substantially Delayed EPC Contractor Claims that the Automatic Stay Constitutes a Force Majeure Event
Scenario 3
Corn and Gas Prices Skyrocket Increases Costs of Production and Decreases Demand for Ethanol Financial System Meltdown Makes Financing Very Difficult to Obtain Owner Unable to Obtain Financing to Complete the Project and Falls Behind on Invoices Owner Asks EPC Contractor to Continue Performing EPC Contractor Has Procured $50 Million of Services, Equipment and Materials From Subcontractors and Suppliers That Has Not Been Paid For EPC Contractor Falls Behind on Invoices from Subcontractors and Begins Receiving Demands for Payment
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Scenario 4
Owner Files For Bankruptcy Protection Owner Threatens To Reject The EPC Contract In Bankruptcy Subcontractors and Suppliers Assert Claims Against EPC Contractor in Court and Arbitration
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Scenario 5
Owner Rejects EPC Contract EPC Contractor Asserts Claims Against Owner in Bankruptcy Court Multiple Subcontractors and Suppliers Commence Separate Arbitrations and Lawsuits Against EPC Contractor in Various Forums
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Scenario 6
Project is Partially Destroyed by Fire Cause of Fire Is Traced to Equipment Provided by Bankrupt Supplier Owner Receives Substantial Settlement From Casualty Insurer Owner Seeks to Assert Claim Against Supplier and Its Insurer in the Suppliers Bankruptcy Case
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Contact Information
To contact Charles A. Dale: chad.dale@klgates.com 617.261.3112 To contact Joseph B.C. Kluttz: joe.kluttz@klgates.com 704.331.7485
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