How shall the rights of a party entering into a contract with an insolvent enterprise be handled in case the contract is suspended?
When the performance of a contract is terminated, if the assets received by the insolvent enterprise from the contract still exist in the assets of the enterprise, the party entering into the contract with the enterprise may claim the return of such assets and while refunding the money which it has received from the enterprise. If such assets no longer exist, the party entering into the contract may have the right of an unsecured creditor to the money that was not refunded.
Should the termination adversely affect the party entering into a contract, such party has the right as an unsecured creditor to damages.
SUBSCRIBE