While post-petition shipments, and goods delivered to a debtor within 20 days before bankruptcy, will both enjoy administrative expense treatment, they leave the creditor exposed to the risk of administrative insolvency until payment occurs. Consequently, some sellers may choose to halt shipments on unpaid goods upon learning of a customer’s impending or actual bankruptcy filing.
Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.
Please see full publication below for more information.
