In this issue:
Scott A. Chernich and Scott H. Hogan
The number of incorporated businesses that declare bankruptcy is relatively low. Studies suggest that around 1 in 10 companies will file for bankruptcy protection at some point. Accordingly, the odds are in your favor that you won’t be named as a creditor in a bankruptcy filing by one of your own customers.
But, in the unlikely event that it does happen, don’t panic. In most cases the financial damage to your company and disruption to its operations resulting from a customer’s bankruptcy can be minimized with a prompt and knowledgeable response...
Destiny R. Hughes and Patrick E. Quinn (Law Clerk)
Once a foreclosure sale is conducted and the amount owed to the foreclosing party has been paid from the proceeds of the sale, surplus funds may be leftover. When surplus funds exist, the person who conducted the foreclosure sale is left to handle the surplus funds and to determine to who the surplus funds belong...
Scott H. Hogan
In the high-stakes world of corporate finance, a 363 bankruptcy sale can be a game changer. This powerful legal mechanism has enabled renowned companies including General Motors, Hertz and Neiman Marcus to navigate existential financial threats and emerge from the reorganization process as much leaner, stronger businesses.
These high-visibility success stories highlight the company-saving, transformative potential of 363 sales, which can offer a lifeline to the most distressed companies and provide high-value, low-cost opportunities for savvy investors...
As we get closer to year-end, this is an important reminder that the Corporate Transparency Act (CTA), a federal law that went into effect in January 2024 and requires eligible businesses to disclose and report information about their owners and controllers to the Financial Crimes Enforcement Network (FinCEN), has an upcoming filing deadline of January 1, 2025.
This deadline is for businesses that existed prior to January 1, 2024. Failure to file by the deadline or comply with the reporting requirements may result in significant civil and criminal penalties including heavy fines and even imprisonment!
If you have further questions or concerns about the CTA and its requirements, be sure to also visit our CTA resource page that includes important Q&A including what information should be reported, company exemptions and what companies are covered under the CTA.
We also encourage you to contact your Foster Swift attorney or a member of our CTA team ASAP if you need assistance:
On September 18, members of our employment services practice group presented a 2024 Virtual Labor & Employment Law Update webinar to address recent amendments in the law including changes to sick leave & minimum wage requirements, status of noncompete agreements and other requirements businesses and employers need to know before 2025 arrives.
Below are video recording links from the webinar to view or share at your convenience. The first link is the full video in its entirety while the subsequent links have been broken up by topic:
Amanda J. Dernovshek and Kelly Reed Lucas
Despite the common belief, not all legal action is resolved in a courtroom setting.
Mediation is a form of alternative dispute resolution that can be used in most non-criminal cases including contracts, leases, child custody, and divorce disputes. Mediation affords privacy not available in litigation and in a successful mediation, all interested parties work cooperatively toward a settlement or fair resolution of their dispute, with the help of a neutral mediator who facilitates the process.
In the following recording, business attorney Amanda Dernovshek, along with mediator and litigator Kelly Reed Lucas discuss practical guidance on the use of mediation...
Lansing
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Southfield
Grand Rapids
Detroit
Holland
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