Mitsubishi Fights Bar On $5.5M Circuit City Claims

Law360, New York (April 7, 2010, 1:02 PM EDT) -- Mitsubishi Digital Electronics America Inc. is appealing a bankruptcy court's decision to allow Circuit City Stores Inc. to temporarily withhold about $5 million in administrative expenses during the defunct company's attempt to recover preference payments.

A bankruptcy judge erred in allowing Circuit City to bar the claims under U.S. Bankruptcy Code § 502(d), which should only apply to unsecured claims, according to a brief Mitsubishi filed Tuesday in the U.S. District Court for the Eastern District of Virginia.

“Every single court outside of the Ninth Circuit...
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