vol 15, num 4 | October, 2017
 
 
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Unsecured
Trade Creditors
 
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Physical Possession of Goods Is Required for an Administrative Expense Under § 503(b)(9)
Bradley Sharp
 
Paul R. Hage
Jaffe Raitt Heuer & Weiss, P.C.
Southfield, Mich.
 
 
The Third Circuit Court of Appeals recently issued an important opinion addressing the question of when goods are “received” for purposes of § 503(b)(9) of the Bankruptcy Code in In re World Imports Ltd. Reversing two lower courts, the appellate court held that in determining whether a seller is entitled to an administrative expense under that section, goods are “received” when the debtor takes physical possession of the goods. Days later, the U.S. Bankruptcy Court for the District of Delaware relied on In re World Imports in holding that a vendor who “drop-shipped” goods to a customer of the debtor during the 20-day period was not entitled to an administrative expense in In re SRC Liquidation, LLC.
 
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Third Circuit Joins Others in Holding WARN Act Exception’s Standard Is “Probable,” not “Possible”
Candace C. Carolyn
 
ADAM LAWTON ALPERT
Bush Ross, P.A.
Tampa
 
Candace C. Carolyn
 
KATHLEEN L. DISANTO
Bush Ross, P.A.
Tampa
 
 

Given the media saturation, it is virtually impossible for any American to be unaware of the allegations that Russia and President Putin interfered in the 2016 presidential elections. But only a much smaller subset of the population likely knows that Russia and then-Prime Minister Putin also played a key role in Eclipse Aviation Corp.’s bankruptcy case seven years earlier.

As a result of the unexpected failure of a bank controlled by the Russian government to provide previously promised financing to a buyer who intended to purchase Eclipse’s operations as a going concern in its chapter 11 case, Eclipse was forced to abruptly shutter its operations and convert its case to one under chapter 7, in the process laying off hundreds of employees with no advance notice. The sudden layoffs triggered a WARN Act suit, culminating in a recent opinion from the U.S. Court of Appeals for the Third Circuit, In re AE Liquidation Inc., wherein the court applied the “unforeseeable business circumstances” exception to WARN Act liability.

 
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Registration Open for This Week's Eye on Bankruptcy

Eye on Bankruptcy

The last Thursday of every month, ABI airs the latest free edition of Eye on Bankruptcy. Attendees of this show can watch the host discuss the most recent hot bankruptcy cases with leading experts! This webinar is free and CLE is available in qualifying states. 

The next edition will be held this Thursday, October 26, from 1 - 2 pm ET. This episode will be hosted by the show's new host, Professor Juliet M. Moringiello of Widener University School of Law in Harrisburg, PA.

This month's guests are Judge Keith Philips (ED Va) and Erika Morabito (Foley & Lardner).

Register now or visit online to view past recordings

 
 
 
Plan Issues Facing Secured and Unsecured Creditors
 
This year's Winter Leadership Conference will be held November 30 - December 2, at the La Quinta Resort & Club, in Palm Springs, CA. The Unsecured Trade Creditors Committee  will be pairing with the Secured Credit Committee to host a session that will explore “creative” plan provisions and interesting confirmation issues that impact both secured and unsecured creditors, including gerrymandering, vote incentivization schemes, drop dead provisions, and golden shares. 

Speakers include:
  • Wendy D. Brewer - JensenBrewer, LLC; Fishers, IN
  • Bernadette M. Barron - Barron Business Consulting; Chicago
  • Mark A. Bogdanowicz - Howard & Howard; Peoria, Ill.
  • Chad J. Schandler - CohnReznick LLP; New York

Register now for outstanding educational sessions, networking, and entertainers Drew Thomas Magic, and Iron Cowboy
 
 
 
 
 
 
 
 
 
 
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