Section 503(b)(9) was added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to protect trade creditors that sell goods to the debtor shortly before the debtor’s bankruptcy filing. Section 503(b)(9) grants trade creditors an administrative priority claim for the value of goods they had sold to the debtor in the ordinary course of the debtor’s business and that the debtor had received within 20 days of bankruptcy (the “20-day goods”). This priority claim increases the likelihood of the debtor’s full payment for the 20-day goods that remain unpaid when the debtor files bankruptcy. It also enables trade creditors to avoid litigating many of the issues that have made reclamation rights illusory and ineffective.
While Section 503(b)(9) is a simple statute, that has not stopped debtors and secured creditors from seeking to eliminate or reduce the priority status sought by goods suppliers by litigating the numerous issues arising out of Section 503(b)(9). They include the meaning of many of Section 503(b)(9)’s terms, such as “goods,” “receipt” and “value,” as well as the defenses to, and the timing of payment of, the priority claim. This article addresses two recent bankruptcy court decisions dealing with the interplay between Section 503(b)(9) priority claims and preference claims. What a lucky break for this writer whose two favorite subjects are trade creditors’ Section 503(b)(9) priority rights and preference claims and defenses.
In the first case, In re Commissary Operations, Inc., the United States Bankruptcy Court for the Middle District of Tennessee ruled that trade creditors could assert their Section 503(b)(9) priority claims as additional new value to reduce their preference liability. In the second case, In re Circuit City Stores, Inc., the United States Bankruptcy Court for the Eastern District of Virginia, temporarily disallowed numerous trade creditors’ Section 503(b)(9) priority claims up to the amounts potentially recoverable on preference claims asserted against them.
Well folks, these decisions do not represent the last word on the issues the courts had adjudicated. While the Commissary Operations holding is the first to allow a creditor to assert its 20-day goods priority claim as additional new value to reduce preference liability, other courts may rule to the contrary, particularly where the creditors’ priority claims are paid post-petition. In addition, the Circuit City court’s ruling that a debtor can invoke Section 502(d) to disallow the Section 503(b)(9) priority claims of creditors subject to preference exposure is currently subject to appeal and motions for reconsideration, and has been rejected by other courts.
Lots to talk about here!
The Commissary Operations Case
Commissary Operations, Inc. (“COI”) filed Chapter 1 1 with the United States Bankruptcy Court for the Middle District of Tennessee on July 22, 2008. COI was a wholesale distributor of food and related goods to restaurant chains and franchises. COI first sought to reorganize its business in Chapter 11. However, shortly after its bankruptcy filing, COI decided to wind-down its business and sell its assets.
At the beginning of COI’s Chapter 11 case, more than 200 creditors asserted claims for allowance and payment of their Section 503(b)(9) administrative expense claims. COI sought to disallow these claims and commenced litigations against the Section 503(b)(9) claimants for the recovery of alleged preference payments.
Preference Claims and the New Value Defense
Section 547 of the Bankruptcy Code governs preference claims
payment protection claim
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Posted on Fri ,03/09/2010 by admin
Maintaining a web space for a business is in demand. Of those millions of businesses buying web space, a tiny percentage of them actually know anything about web design or programming for the Internet.
Pet supplies and accessories are also great resell items, particularly the larger animals such as horses and cattle. Tack and other horse equipment is hard to come by in parts of the country and if you are a supplier, you have a niche market almost all your own in the reseller business opportunities field.
Books, music, computer programs, pets, and just about anything else you can imagine has a resell value. Companies are springing up everywhere offering resell opportunities to small businesses and home based businesses.
varmepumpe
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Standard curriculums often include, of course, hands-on myotherapy training; in addition to students learning how to assess patients based on pathological conditions affecting muscle function; how to implement treatment plans by applying a variety of myotherapy techniques; and how to monitor and manage patient progress.
Myotherapy school courses may include but are not limited to introduction to massage therapy; anatomy and physiology; stress and pain related syndromes; massage therapy professionalism; acutherapy; hydrotherapy; mind-body interrelation; trigger-point therapy; kinesiology; polarity therapy; basic business skills; and other coursework relevant to myotherapy training.
Depending on particular myotherapy schools and educational institutions, some may offer certificates of completion or diplomas in myotherapy course completion, with courses ranging from 1-2 years (shorter time frames for the self learner).
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Above is a GENERAL OVERVIEW and may or may not reflect specific practices, courses and/or services associated with ANY ONE particular school(s) that is or is not advertised on SchoolsGalore.com
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grants for education
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Making a will is a responsibility, as well as a right that is protected by law.
A will should be made when a person is legally competent, having a sound mind and at least 18 years old. It should be prepared while its maker is in good health and free from emotional stress. In other words, to make a valid will, people must understand things such as what property they own, its value, and whom they are leaving it after their death.
A person does not need to have a large estate to plan and prepare a will. Anyone who owns property, including cash, stocks, jewelry or furniture, or real property, such as land or house, could prepare a will. If married, each spouse should have a will indicating the ownership and transfer of property.
In addition to distributing or transferring of property, a will should have other functions. It may be used to name a guardian for any minor children or to create a trust and designate a trustee to handle an estate (property left after death) on behalf of children or others.
solicitors in leeds
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