© Copyright 2012, vLex. All Rights Reserved.
- Language
Contents in vLex United States
Explore vLex
For Professionals
For Partners
Company
debtor days
More than 10.000 documents for debtor days
-
To: POLITICAL EDITORS Contact: Republican National Committee, +1-202-863-8614
-
A debtor met the bankruptcy deadline for assuming a nonresidential real property lease by filing a motion to assume the lease within the allotted time, the 6th has ruled in affirming judgment. Section 365 of the Bankruptcy Code generally provides that a debtor has 120 days after filing for bankruptcy to assume or reject nonresidential real property leases.
-
Section 503(b)(9) was added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 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). 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). Section 547 of the Bankruptcy Code governs preference claims. Creditor...
-
The results of a new online tool launched by the Institute of Credit Management to give small businesses an early warning of potential problems with cashflow are already giving cause for alarm. The online calculator provides a simple traffic light warning of impending cashflow difficulties based on outstanding 'debtor days.' In a pilot in August, more than 300 businesses answered two simple questions (the amount of credit extended to customers over the past six months and the amount owed by customers) to reveal an immediate indication as to the extent of their cashflow concerns.
-
Debtors usually file for bankruptcy protection to either reorganize or to liquidate their outstanding debt through what is commonly known as a "fresh start." The principal purpose of the Bankruptcy Code is to grant a "fresh start" to the honest but unfortunate debtor. This "fresh start" is ensured by a debtor obtaining a discharge after filing for bankruptcy protection. Individuals are entitled to a discharge in Chapter 7, Chapter 13, or Chapter 11 proceedings, but corporations can only receive a discharge under Chapter 11. In a Chapter 7 liquidation case a complaint objecting to the debtor's discharge under § 727(a) of the Code shall be filed no later than 60 days after the first date set for the meeting of creditors under § 341(a). As the deadline to file dischargeability complaints u...
-
Section 503(b)(9) of the Bankruptcy Code was added by the 2005 Bankruptcy Code amendments to grant an administrative priority claim in favor of trade creditors that sell goods to the debtor in the ordinary course of the debtor's business, which the debtor had received within 20 days of its bankruptcy filing (the "20-Day Goods"). Debtors and secured lenders have more frequently sought to limit the amount of trade creditors' 20-Day Goods priority claims by litigating many questions left unanswered by Section 503(b)(9). Among the litigated issues is the debtor's invocation of its setoff rights against the creditor to disallow or reduce the creditor's Section 503(b)(9) priority claim. That is precisely what recently happened in Circuit City's Chapter II case pending in the US Bankruptcy Cou...
-
The value of collateral depends on the priority of the secured creditor's interest in it. This article focuses on personal property collateral which is governed, for the most part, by a uniform set of laws: Article 9 of the Uniform Commercial Code. Priority in real property collateral, and threats to that priority, vary significantly from state to state and make a broad discussion of little value. The recent amendment to the Bankruptcy Code authorizes a utility to terminate service 30 days after the case filing. The debtor must provide "adequate assurance of payment" to the utility within the first 30 days of the case to preserve service. Secured lenders with collateral that may be damaged by utility loss should participate in the first days of the case to ensure the debtor protects its...
-
The severance claims of former employees are entitled to full priority in the employer's bankruptcy case, the 4th Circuit has ruled in affirming judgment. The debtor terminated the employees within the last 180 days before the company filed for bankruptcy.
-
As most savvy collection managers know, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 granted suppliers a priority in payment for goods received by the debtor within 20 days before bankruptcy. The new statute undoubtedly increased the chances that suppliers will achieve a significant recovery in bankruptcy. However, the courts have made it clear that Congress did not guarantee suppliers instant gratification on their newly created pre-bankruptcy administrative priority claims. Even though vendors should benefit in the long run from the new priority granted to them by Congress, courts have declined to order immediate payment of newly created priority claims for goods received by the debtor within 20 days prior to the bankruptcy petition. Further, while Congress exte...
