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Seller Beware: Delivery of Goods Post-Petition May Cost You

The Eleventh Circuit case <i>In re Delco Oil, Inc. (Marathon Petroleum Co., LLC v. Cohen)</i>, serves as an important reminder for suppliers to monitor a customer's bankruptcy filing and to confirm the rules for doing business before delivering goods to a debtor.

20 minute read May 27, 2010 at 12:35 PM
By
Ann Marie Uetz and Jennifer Hayes
Seller Beware: Delivery of Goods Post-Petition May Cost You

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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