Commercial and Bankruptcy Law
Motor carriers are often confronted with issues involving commercial and bankruptcy law. Commercial law issues typically arise on a recurring basis when business and equipment financing arrangements, such as revolving credit and line-of-credit facilities, are sought, obtained, renewed, extended, and/or modified and when new equipment acquisition financing is needed or renewed. Additional commercial law issues may involve letter of credit facilities, collection of bad checks, and other Uniform Commercial Code matters. Bankruptcy law issues often arise for motor carriers as customers, shippers, brokers, and other carriers file bankruptcy cases and claims arise out of those actions.
The Scopelitis firm represents motor carriers on commercial issues such as the negotiation, structuring and restructuring of credit facility, equipment financing and debt arrangements; the perfection of lien rights; the pursuit of collection efforts; and the litigation of a wide variety of other commercial law matters that arise in the day-to-day operation of a trucking business. We also regularly practice in the bankruptcy law arena, representing motor carriers with claims in Chapter 11 cases and defending preferential transfer avoidance actions.
It is not unusual for motor carriers to contact our commercial law and bankruptcy practice as they embark on a wide array of debt financing and capitalization issues. Yet, too often preliminary contracts have already been executed that set the course of subsequent negotiations and contracts in a direction unfavorable to the motor carrier. The firm’s lawyers have been involved in a myriad of unconventional lending/borrowing arrangements and can provide keen insight if applied in a timely manner on exactly what principal, mezzanine, and other more subordinated lenders will deem an acceptable, although not always conventional, structure for such transactions. Moreover, our attorneys have had success in identifying untapped internal and external financial resources to augment a motor carrier’s financial position.