Bankruptcy Code Section 503(b)(9): Providing and Improving Protection for Trade Creditors
The Bankruptcy Code Section 503(b)(9) is intended to provide and improve additional protection for trade creditors. Section 503(b)(9) "allows a supplier of goods to assert an administrative expense claim for the value of goods received by a debtor in the ordinary course of business within 20 days of the debtor's bankruptcy filing." This also entitles creditors to an administrative claim for the value of any goods received by the debtor. In spite of its simple framework, creditors must carefully consider the goods supplied to a debtor and identify whether it qualifies for a 503(b)(9) claim.
In order to improve a creditor's chances of payment and save on legal fees when pursuing recovery on a 503(b)(9) claim, companies should be mindful of the various legal issues and developments surrounding the Bankruptcy Code Section 503(b)(9).
In this LIVE Webcast, a panel of seasoned professionals and thought leaders brought together by The Knowledge Group will help the audience understand the important aspects of the Bankruptcy Code Section 503(b)(9). Speakers will provide the practical tips and strategies in complying with the requirements of Section 503(b)(9).
Key topics include:
- Bankruptcy Code Section 503(b)(9) - Legal Framework
- Scope and Limitations
- Priority Claims Vs. Preference Claims
- Compliance and Risk Mitigation Schemes
- Recent Court Decisions
- Tips in Preparing for a 503(b)(9) Claim
Mark D. Podgainy, Managing Director
Getzler Henrich & Associates, LLC
- Overview of section 503(b)(9) of the Bankruptcy Code
- Why it’s inclusion in the Code was significant
- Remedies prior to 503(b)(9)
- Interpreting 503(b)(9) to mitigate risk
- Meaning of “goods”
- Value of the claim
- When goods are received
- Calculation of the 20-day period
- Definition of “ordinary course of business”
- Filing a Claim
Geraldine E. Ponto, Partner
- Is relief available under section 503(b)(9) of the Bankruptcy Code if the vendor does not qualify for reclamation under section 546(c)?
- Does strict construction of the phrase “the value of any goods received by the debtor” within section 503(b)(9) preclude constructive receipt by the debtor within the meaning of the Uniform Commercial Code, when the goods were shipped to the debtor’s sub-purchaser or representative?
- If administrative expenses allowable under section 503(b) must be strictly construed, is it fair and consistent with legislative intent for a debtor to seek allowance and payment of other administrative expenses described under section 503(b) by a “first-day motion,” but defer consideration of vendor 20-day claims, impose upon such vendors compliance with a rigorous and protracted procedure to have their claims considered to which other administrative expense claimants under section 503(b) are exempt.
Who Should Attend:
- Trade Creditors
- Bankruptcy Lawyers
- Bankruptcy Professionals
- Business Managers
- Sales Executive and Personnel
- Operations Executives
- In-house Counsel
- Top Level Management
- Multinational Companies
- Private and Public Companies
Mark Podgainy is a Managing Director in the New York office of Getzler Henrich & Associates; he has more than 20 years of experience working with healthy, underperforming and distressed middle market businesses, both as an advisor and as a member of the management team. He has provides operations restructuring, business plan analysis, performance improvement, cash and vendor management, bankruptcy consulting and interim management services. He has also works with law firms on forensic and litigation support assignments in a bankruptcy context. His clients have included business owners, boards of directors, private equity firms, lenders, creditors’ committees and law firms, and he has worked in a variety of sectors, including consumer products, building products, food, hospitality, and retail, among many others.
Mark Podgainy is a Managing Director in the New York office of Getzler Henrich & Associates; he has more than …
Geraldine Ponto concentrates her practice on creditor/debtor rights. With more than 30 years of experience, Geraldine has represented debtors, fiscal agents, trustees, secured and unsecured creditors, and creditor committees in federal bankruptcy cases, in SIPA liquidations, in out-of-court workouts, and in insolvency proceedings governed by state law.
She has served as lead attorney representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS) as court-appointed counsel and represents an international baking company in debtor/creditor matters in bankruptcy courts throughout the United States. Geraldine has also represented a telecommunications company in debtor/creditor matters in various bankruptcy courts in the United States; and served as a trustee under chapter 11 of the Bankruptcy Code for debtor companies in various industries, including former retailer of discount priced women's clothing and accessories; operator of three retail automobile franchises; transportation and terminal company; and former metal playing and refinishing company.
Geraldine Ponto concentrates her practice on creditor/debtor rights. With more than 30 years of experience, Geraldine has represented debtors, fiscal …
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Method of Presentation:
Experience in bankruptcy
NASBA Field of Study:
Finance - Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About Getzler Henrich & Associates, LLC
Getzler Henrich & Associates LLC, founded in 1968, is one of the nation's oldest and most respected names in middle market corporate restructurings and operations improvement and has successfully worked with over a thousand companies throughout the world to achieve sustainable growth and profitability. Long respected for its results-oriented approach, Getzler Henrich deploys rapid, pragmatic decision making and metrics-driven implementation services for its clients. With years of experience in executive-level positions at major corporations, and a broad range of advisory expertise, Getzler Henrich professionals have consistently and successfully guided companies through crises and growth phases. Working with a wide range of companies, including publicly-held firms, private corporations, and family-owned businesses, Getzler Henrich’s expertise spans more than fifty industry sectors, from ‘new economy’ technology and service firms to ‘old economy’ manufacturing and distribution businesses.
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