VA Bankruptcy Court Rules on New Value Defense and ' 503(B)(9) Claim

A recent decision issued by the Bankruptcy Court for the Eastern District of Virginia further calls into question the availability of a new value defense in a preference action when the amount claimed by the creditor to constitute new value represents an administrative claim under ' 503(b)(9)...

7 minute read February 25, 2011 at 09:16 AM
By
Pedro A. Jimenez And Nicholas C. Kamphaus
VA Bankruptcy Court Rules on New Value Defense and ' 503(B)(9) Claim

A recent decision issued by the Bankruptcy Court for the Eastern District of Virginia further calls into question the availability of a new value defense in a preference action when the amount claimed by the creditor to constitute new value represents an administrative claim under ' 503(b)(9) for goods delivered to the debtor during the 20-day period prior to the debtor's bankruptcy filing.

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