Luke Zadkovich’s personal thoughts on the current crisis.   We are all trying to come to terms with the devastating effect of the global pandemic.  By communicating, we can hopefully share our concerns, come together and be part of the solution.   Stay safe, keep healthy.

Fraudulent asset transfers   Part 14 of our series on the tools and strategies for how international businesses can deal with an economic crisis.   Sadly, for some businesses, the economic crisis will put their backs against the wall. In those circumstances, some parties will be tempted to hide assets, rather than be exposed to liability. Following the financial collapse of 2008/2009, we saw an increase in fraudulent transfers.    Tim McGovern has experience securing claims against assets that have been the subject of such fraudulent transfers, including an action against a publicly traded entity in respect of a USD 70 million liability.  Tim sets out when and how these assets can be traced, so that they find their way back to the true creditor(s). For further information please contact Timothy McGovern or anyone from the ZFZ team to discuss this, or any of the other topics in the video series.

Bankruptcy proceedings   Part 13 in our series on how to deal with the economic crisis – a guide for international businesses.   Edward Floyd, founding Partner at ZFZ, addresses US bankruptcy proceedings in light of recent events and gives an overview of the inner workings of Title 11 of the US Code.   What protections can a creditor rely on when a counterparty is insolvent? This is a central consideration in protecting a party’s exposure in what is at best a timid market and may be a full-blown financial crisis. The US scheme also covers the handling of foreign bankruptcy proceedings and knowing the areas of law and issues where to stand your ground is key to maximize a creditor’s chances of prevailing and finding some measure of recovery in the collective proceeding that is bankruptcy. Having skilled counsel provide timely and dynamic advice as counterparty risk increases or defaults become apparent, can be of immense benefit to creditors.   ZFZ has been very active in this area.  We have been involved in high profile bankruptcies and are happy to discuss the cross-section between maritime law and bankruptcy. For further information please contact Ed Floyd or anyone from the ZFZ team to discuss this, or any of the other topics in the video series.