March 29, 2019
Partners Michael Evan Avidon and Mark N. Parry will be speaking at the ABA Business Law Section 2019 Spring Meeting in Vancouver, Canada, on March 29, 2019 on "Letters of Credit & Applicant Bankruptcy: U.S. & Canadian Bankruptcy Provisions and Cases for Beneficiaries, Issuers, Applicants & Others." They will be discussing relevant statutory provisions and cases from both sides of the U.S.-Canadian border as well as practical steps the parties may take to avoid unexpected results in a bankruptcy proceeding.
The presentation will be valuable for lawyers who represent letter of credit beneficiaries (such as bond trustees and sellers of goods), applicants (such as borrowers and purchasers of goods), banks that issue or confirm letters of credit, and lenders and other creditors of any of the foregoing. It will put U.S. and Canadian law and cases in a useful framework and highlight pitfalls to avoid.
Among the subtopics to be covered are:
- the independence principle of letters of credit;
- the automatic stay in bankruptcy;
- property of the bankruptcy estate;
- avoiding drawing conditions that require taking action against the applicant or its property;
- preferences, indirect preferences, and other avoidable transfers;
- direct-draw or direct-pay LCs versus pure standby LCs; and
- the U.S. cap on damages for breach of a real estate lease.