Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.
Under the Bankruptcy Code, claims are paid based on a priority system where administrative expense claims precede general unsecured claims. While most administrative claims are for post-bankruptcy goods or services, Section 503(b)(9) classifies any claim for goods received by the debtor 20 days prior to bankruptcy filing, sold in the ordinary course of business, as an administrative expense.
This article briefly explains the key issues of a Section 503(b)(9) claim in a bankruptcy case.
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