Law360, New York (October 23, 2009) -- A case of first impression before the Second Circuit — ASM Capital LP v. Ames Department Stores Inc. (In re Ames Department Stores Inc.), 2009 U.S. App. LEXIS 20764 (2d Cir. Sept. 18, 2009) — has raised the question of whether Section 502(d) of the Bankruptcy Code, which bars allowance of certain claims against the debtor’s estate by alleged recipients of preferential transfers until they have returned any voidable preferential payments or transfers from the debtor’s estate, also bars postpetition administrative expenses pursuant to Section 503(b).
Appellant ASM Capital LP, an investor in distressed debt, acquired claims against Ames’ bankruptcy estate from various of Ames’s creditors. This included two claims held by G&A Sales Inc., a...
