County's Late $1M Tax Claim Denied In Tribune Ch. 11 Case

Law360, Wilmington (October 8, 2013, 10:45 PM EDT) -- A Delaware bankruptcy judge Tuesday expunged a late-filed $1.3 million tax claim against reorganized media giant Tribune Co., rejecting Cook County's contention that the Bankruptcy Code permits tardy priority claims to trump allowed unsecured claims.

U.S. Bankruptcy Judge Kevin J. Carey rejected the county's argument that Section 726 of Bankruptcy Code provides that tardy priority claims in Chapter 11 should be allowed and paid before any distribution is made to general unsecured creditors, finding that that section applies only to cases in Chapter 7.

Without cover...
To view the full article, register now.