Construction Project Bankruptcy Strategic Considerations for 建设项目破产的战略思考.pptVIP

Construction Project Bankruptcy Strategic Considerations for Owners, General Contractors and Construction Managers December 16, 2008 Presenters Charles A. Dale, Boston office, focuses his practice on matters of bankruptcy and insolvency with extensive experience in the construction industry. Joseph B.C. Kluttz, Charlotte office, focuses on the structuring and restructuring of large financial transactions within construction and other industries to avoid and manage insolvency risk. State of the Industry “McGraw-Hill Construction (of which ENR is part) is forecasting a 7.4% decline in construction starts in 2009, following declines of 12.4% this year and 8.0% in 2007.” — All Sectors Go Negative Next Year As A Real Recession Rattles Markets, by Tim Grogan and Steve Setzer, ENR.com, 11/12/08 “Litigation is cropping up across the country over … building developments that unraveled as U.S. financing tightened … , leaving financiers, developers and contractors to fight over who should pay for the failed deals.” — As Building Projects Collapse, Suits Pile Up, by Lynne Marek, The National Law Journal, 11/3/08 “The U.K.s 82 billion-pound building industry, accounting for about 5% of the economy, has ground to a halt, with little work being booked because of faltering demand and a credit freeze.” — Builders Hold $1.7 Billion Payments in Recession Sign, by Tim Barwell, B, 10/17/08 Basic Facts 200 Million Dollar Ethanol Plant Project Specific Owner EPC Contractor Major Subcontractors / Suppliers Project Partially Financed – Remaining Financing to be Obtained During Construction Fast Track to Meet Peak Season Demand Performance / Payment Bonds Owner Letters of Credit Parental Guarantee from Owner Various Forms of Insurance Scenario 1 Owner Learns About Problems on the Project Two Major Subcontractors Have Not Been Paid for Two Months and are Threatening to File Liens One Major Equipment Supplier Behind Schedule and Unwilling to Complete Fabrication Absent Substanti