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.
This series was started (click here to read from the beginning) with a broad overview of business bankruptcy but our last few installments have focused on unsecured creditors (click here to read about unsecured creditors) and the priority scheme in bankruptcy (click here for the 30,000-foot view or you can find more specific treatment here, here and here). In this […]
You recently shipped goods to a U.S. customer on credit. Now the customer is insolvent and evidently sliding into bankruptcy. As in baseball, at the close of the slide, the customer may be safe, continuing in business or sold as a going concern, or out, and facing liquidation. What to do? Included among the concerns […]
You sold services and received, instead of payment, a notice that your counterparty has filed for chapter 7 or chapter 11 bankruptcy protection. You understand that you have a “claim” against the “debtor,” in bankruptcy parlance. A bankruptcy claims purchaser offers to purchase your bankruptcy claim from you for cash. You accept. You metaphorically light […]