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Section 503(B)(9) Four Years Later

In 2005, Congress added Code ' 503(b)(9) and created a new administrative claim which, in effect, creates a class of "critical" pre-petition creditors that debtors can pay without court authority. The creditors in this entitled class did nothing more than deliver goods to the debtor within 20 days prior to the petition date. Interestingly, the section provides no similar relief to providers of services or any class of lender.

13 minute read July 28, 2009 at 09:25 AM
By
Adam L. Rosen And Anthony Michael Sabino
Section 503(B)(9) Four Years Later

In 2005, Congress added Code ' 503(b)(9) and created a new administrative claim which, in effect, creates a class of “critical” pre-petition creditors that debtors can pay without court authority.

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