Thursday, May 21, 2009

Stock Drops

I represent a contractor in a dispute with Stock Building Supply over a supposed balance owed.  The case has been nearly dormant for awhile, and I've spent the last couple of weeks prodding opposing counsel to get things moving.  Last ninght I finally got a response, essentially along the lines of, "Hey, where have you been?  Stock filed Chapter 11.  This case is dead."

Now really, I try to keep up on things, but this completely fogged by me.  I went back and checked my news sources and saw that the whole thing has mostly been under the radar.  I guess it's a sign of the economic times that a major construction supplier can be sucked into a black hole, and the only coverage is between the classifieds and the obits.  Probably also a sign of what news reporting has become.

So what do we all take away from this?  Well, my client is basically in a wash.  He won't get the money he thinks he's owed, but he's not going to worry about Stock's claims against hime either (Yes, I know, the trustee/DIP could still pursue him, but he's too small a fish for these circumstances.).  Me?  I've had some potential billables get cut off, but I've been in this game too long to bother counting it until it's in hand (Let's just say I have a cash mindset, not accrual).  Other contractors?  If you were planning on using Stock, better get a new plan.  In general?  In spite of the smiley faces everyone is now painting on the economy, there's still a lot of turmoil and downside out there.

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3 Comments:

At June 20, 2009 at 9:37 AM, Blogger workhard said...

your article is good and informative

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At June 29, 2009 at 10:04 PM, Blogger Rajesh said...

Nice post on the situation.
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At August 3, 2009 at 12:54 PM, Blogger Knute Rife said...

Thanks. Glad to be of help. Keep those cards and letters coming.

 

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