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Expert Analysis

Circuits Still Split Over Enviro Fines In Bankruptcy

Law360, New York (March 6, 2014, 4:26 PM EST) -- In a typical bankruptcy case, creditors jockey for position to be paid from the assets of the bankruptcy estate. Some debts receive priority status under the Bankruptcy Code, while others fall into a pool of general creditors to be paid last. One category of debt in particular, the administrative expense, receives priority treatment ahead of the pool of general creditors. Although administrative expenses are typically fees or wages involved in managing the estate, courts have expanded the category to include other claims....

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