The only thing worse for a licensor than losing money when its licensee files for bankruptcy is paying attorneysâ€™ fees on top of that to stop the bleeding.
Two of the most common bankruptcy proceedings that licensor creditors get involved in are: 1) hearings related to the licenseeâ€™s attempt to assume an executory license agreement; and 2) lawsuits against the licensor to recover so-called preferential transfer payments from the licensee.
But can a clever licensor recover attorneysâ€™ fees incurred in post-petition bankruptcy proceedings, if it had the foresight to include a well-drafted attorneysâ€™ fee provision in its boilerplate license agreement?
He says that clever licensor maybe, possibly can — say, if he has a clever lawyer, like Richard Bergovoy. Click the link to read about how it might be done.