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The Bankruptcy Strategist

July 2010

Seller, Beware

Delivery of Goods Post-Petition May Cost You

By Ann Marie Uetz and Jennifer Hayes

Companies that continue to supply to a customer after the customer files for Chapter 11 bankruptcy protection should take note of a recent decision from the Eleventh Circuit that required a supplier to return the money it was paid by a Chapter 11 debtor — for goods shipped to the debtor post-petition — because the debtor did not have authority to make the payment in the first place.

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