Defining 'In the Ordinary Course' Of Business

Law360, New York (September 1, 2010, 1:34 PM EDT) -- Section 503(b)(9) of the Bankruptcy Code,[1] enacted in 2005 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act reforms, afforded administrative expense priority status to debts for “the value of any goods received by the debtor within 20 days before the date of commencement of a case under this title in which the goods have been sold to the debtor in the ordinary course of the debtor’s business.”

Like many other terms in that provision, Congress failed to define “ordinary course,” and legislative history,...
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