Administrative Expense Claims
The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.
Super priority claims are not created under Section 503(b) and therefore don’t take a back seat to chapter 7 administrative claims.
Judge Furay interprets ‘disbursements’ not to include the daily sweep of a collection account in a revolving credit.
Jevic doesn’t mandate forcing professionals to disgorge interim allowances to achieve a pro rata distribution to administrative claimants in an administrative insolvency.
Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.
Ethical issues abound when a committee counsel’s own financial interest conflicts with its client’s interests.
A creditor’s expenses in removing its equipment after contract rejection is not entitled to administrative status.