The impending bankruptcy of a retailer is one of the most stressful experiences that a supplier may face. The supplier is confronted not only with the potential loss of a major customer, but also with the possibility of significant financial losses on account of unpaid accounts receivable. A supplier often finds itself scrambling to mitigate […]
Two important decisions by the Third Circuit Court of Appeals and the Delaware Bankruptcy Court shed light on goods in receipt of debtors in Section 503(b)(9) claims.
When a customer files for bankruptcy, vendors with claims against the debtor that arose before the commencement of the case (the “Petition Date”) can be exposed to considerable losses. To protect themselves in the days and weeks before and after the bankruptcy filing, creditors must assess how to maximize their distribution on claims and prepare […]