In recent months, a few incidents have come to light where vendors or trade creditors to a company sought criminal action and government intervention when the firm failed to pay their dues.
The issue appears to be gaining ground considering that many distressed companies and startups are becoming potential targets for mergers and acquisitions.
Vendors and trade creditors—or operational creditors—supply goods and services to a company. And they can pose stiff opposition to such M&A deals if their concerns are not addressed.
But can an unsecured operational trade creditor take legal recourse to obstruct a merger or acquisition proposal or initiate an insolvency process?
Read more at vccircle.com
