Q. Procurement

Submitted by y0zh on Thu, 05/09/2013 - 20:04

 You are managing a project for a customer that has just gone bankrupt and is subject to liquidation proceedings. There are several outstanding invoices that this customer has not paid to your company. What should you do now?

  1. Go into alternate dispute resolution

  2. Do nothing.

  3. Contact the appropriate management at your company for advice how to proceed.

  4. Send the invoices to the bankruptcy attorneys.

 

Can you please explain what is the correct answer and why you selected it? Do we have any reference in PMBOK for this?

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crushPMP's picture

crushPMP

Thu, 05/09/2013 - 20:13

Probably not from PMBOK, but I have some expertise in bankrupty of financial banks and would go with D.


After bankrupty of your conterparty - there is a precedence line of payment (the order in which various involved parties are paid) - 1st the vendors, suppliers, bond-holders, debt-holders, warrents, preferred stock holders are paid and if anything is left then the common shareholders are paid (but almost all the time - around 99.99% common shareholders are wiped out and paid nothing).


So yea, back to PMP - You would send you pending payment invoice to the bankrupty attorney's involved in the bankrupty proceding and liquidation.


 


For the sake of PMI - I would go with C