Unsecured Trade Creditors Committee

ABI Committee News

20 Day Goods, § 503(b)(9) and New Value: Part II
Is Ordinary Course Litigation Coming into its Own?

The February newsletter contained an article by Edward L. Schnitzer and Anting J. Wang contrasting the Commissary [1] and Circuit City [2] decisions regarding the interplay between § 503(b)(9) administrative claims and the new value defense under § 547(c)(4).  The conclusion reached in that article was that Commissary and Circuit City represented conflicting decisions.  This author finds common ground between these decisions but notes that additional related issues are lurking just over the horizon. Click here to read Part I.

Circuit City and Commissary
As discussed in the previous article, in Circuit City, the United States Bankruptcy Court for the Eastern District of Virginia refused to allow a preference defendant to claim § 547(c)(4) subsequent new value for goods that were also the subject of a 503(b)(9) claims (20-day goods).  In Commissary, the U.S. Bankruptcy Court for the Middle District of Tennessee, seemingly, did just the opposite.

Read the full article.


Cut The Middle Man: Court Prohibits Use of Client for Indirect Solicitations

Representing creditors’ committees can be lucrative.  Law firms, therefore, often engage in competitive pitches with other firms when seeking to become creditors’ committee counsel.  In order to bolster the odds of winning multi-firm “beauty contests,” many firms actively solicit votes from committee members, or if the committee is not yet formed, from the potential committee members. While some solicitations are perfectly acceptable, others may violate applicable rules of professional conduct.  A recent Delaware decision, Universal Building Products, found committee counsel on the wrong side of the disciplinary rules.  Understanding the disciplinary rules governing the solicitation of creditors' committees, and knowing how to properly solicit committee representations is critical.

Read the full article.


Trust in the PACA Trust: A Bankruptcy Practitioner's Primer on the Perishable Agricultural Commodities Act

Shan A. Haider
New York


Infrequent but Ordinary: Bankruptcy Preference Claims Involving Infrequent Corporate Activities

Relations between one company and another do not always follow a consistent and steady course. As the economy, industry dynamics, material prices and politics change, the relationship between the customer and suppliers will also often change. This article discusses recent and long-standing opinions of various U.S. courts regarding these circumstances and provides guidelines for information that may be helpful in establishing that such arrangements and payments may indeed be “ordinary.”

Read the full article.


Materials from the 29th Annual Spring Meeting Are Now Available Online


Order Your Copy Today! - "The Bankruptcy Court's Watchdog: Examiners Today"

ABI is pleased to announce the arrival of it's newest publication, "The Bankruptcy Court's Watchdog: Examiners Today." This new publication, written by John C. (Kit) Weitnauer, walks practitioners through the appointment of an examiner in a bankruptcy case, the examiner's responsibilities, the selection and appointment process, the requirements for the examiner's final report and the examiner's fee structure. This comprehensive manual is replete with case law, with several appendices that contain examples from actual cases.

Did you know that all of ABI's publications are written by experts in the field and are widely used by the bankruptcy bar and bench? You can own these same publications by visiting the online ABI Bookstore. The ABI Bookstore carries over 40 publications, offers several bundled packages for your convenience and includes free ground shipping!

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