Getting The Most Bang For Your 503(b)(9) Bucks

Law360, New York (June 9, 2016, 3:46 PM EDT) -- Many creditors who have supplied goods to a debtor before a bankruptcy case begins think their only prospects for recovery will be pennies on the dollar. While often, prepetition claims are relegated to receive small, if any, distributions, there is a unique carveout in Section 503(b)(9) of the Bankruptcy Code that elevates “goods” supplied in the 20 days before a bankruptcy filing to administrative expense status. Understanding what exactly is entitled to 503(b)(9) treatment, recent developments in setoff case law, and typical blunders to avoid are paramount to ensure the greatest recovery for your claim with the least amount of litigation....

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