Recognized as one of the nation’s preeminent automotive law firms, Dickinson Wright has worked with major automotive corporations for decades in protecting the supply base and production when faced with a financially distressed supplier. Based on our experience with hundreds of distressed supplier engagements, Dickinson Wright has unparalleled knowledge of the business and critical time issues faced by original equipment manufacturers and tier one suppliers in addressing and resolving a financially distressed link in the supply chain. Dickinson Wright’s attorneys provide innovative and practical solutions to managing supplier distress, making themselves available to address the “fire drill” that often accompanies a threatened break in supply and its implications up and down the supply chain.
Some of Dickinson Wright’s troubled supplier expertise includes:
- Negotiation and documentation of accommodation agreements and access and security agreements.
- Negotiations with lenders in providing forbearance and funding accommodations.
- Negotiations with suppliers and lenders in providing subordinated participations or other funding mechanisms to the distressed supplier.
- Representation of customers in supplier bankruptcy proceedings including court approval of customer accommodation agreements, debtor-in-possession financing, lifting the automatic stay, and Section 363 sale proceedings.
- Counseling in areas related to union or employee issues that may be faced by the financially distressed supplier.
- Addressing supply issues faced by the financially distressed supplier, including providing bailment arrangements and guaranty letters.
- Negotiations and new supply agreements with prospective purchasers of the troubled suppliers business.
- Representation of suppliers in addressing and resolving stop shipments.