Case Study: In Re Circuit City Stores

Law360, New York (May 18, 2010, 3:12 PM EDT) -- A bankruptcy court recently held that in order for a supplier of goods on credit to establish an administrative claim under Bankruptcy Code section 503(b)(9) in the bankruptcy case of its buyer, the supplier will need to show that its buyer "physically" received the goods within 20 days prior to the buyer's bankruptcy filing, regardless of when title to the goods passed. In Re Circuit City Stores Inc., et al., Case No. 08-35653, No. 7149 (Bankr. E.D. VA April 8, 2010).

Section 503(b)(9) was added to...
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