Bankruptcy Courts Rule On 20-Day Claims

Law360, New York (May 14, 2007, 12:00 AM EDT) -- As part of the 2005 revisions of the Bankruptcy Code, Congress greatly enhanced the priority of claims asserted by suppliers of goods to debtors in the 20-day period immediately prior to a debtor’s bankruptcy filing by enacting new section 503(b)(9). This new provision raises several interesting issues, some of which were addressed by two recent cases examining the question of when such claims are to be paid.

* The Language of Section 503(b)(9) *

Section 503(b)(9) of the Bankruptcy Code provides an administrative priority for claims—so-called...
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