First-day Motions

Sixth Circuit Enforces a ‘Carveout’ for Professionals after Conversion to Chapter 7

The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.
Court: 

Chapter 11 Super Priority Claims Retain Exalted Status After Conversion to Chapter 7

Super priority claims are not created under Section 503(b) and therefore don’t take a back seat to chapter 7 administrative claims.

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