This article is the first in a four-part series of articles addressing the quandaries that a trustee encounters when dealing with contingent claims in the context of a solvency analysis. Read Part 2, Part 3, and Part 4.
It is not uncommon for a company with a defective product, significant litigation, or both to find itself in bankruptcy. So, when a trustee is appointed and begins the process of assessing the claims of creditors, the trustee may be confronted with a dilemma over certain potential claims.