Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States
As discussed in the prior post, creditors may receive administrative-expense priority for “the value of goods received by the debtor within 20 days before” the debtor’s bankruptcy filing “in which the goods have been sold to the debtor in the ordinary course of business.” 11 U.S.C. § 503(b)(9).
The question then becomes what constitutes…
Below is a post from Michael Temin, senior counsel with Fox Rothschild.
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Bankruptcy Code § 365(d)(3) requires the trustee or the debtor in possession to “timely perform all the obligations of the debtor . . .arising from and after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1).” In 2001 the Third Circuit construed this section to require the debtor to perform the lease in accordance with its terms. CenterPoint Properties v. Montgomery Ward Holding Corp. (In re Montgomery Ward Holding Corp.), 268 F.3d 205 (3d Cir. 2001).…
Continue Reading Third Circuit Affirms Delaware Bankruptcy Court Stub Rent Decision
Introduction
The Honorable Christopher S. Sontchi, presiding over the Goody’s bankruptcy in the United States Bankruptcy Court for the District of Delaware, issued a decision recently regarding the scope of administrative claims under 11 U.S.C. 503(b)(9). Section 503(b)(9) provides that after notice and a hearing, there shall be an allowed administrative expense claim for…
