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Reclamation, Administrative Claims and Other Possibilities for Recovery When a Factor Has Not Approved Orders

Reclamation, although appearing rather simple at first glance, is a remedy that requires reference to the expanding body of case law that has interpreted Bankruptcy Code Section 546(c). The over-used term "a trap for the unwary" is exemplified by the reclamation issues that can arise in a Chapter 11 reorganization case.

26 minute read July 02, 2015 at 12:00 AM
By
Benjamin S. Seigel
Reclamation, Administrative Claims and Other Possibilities for Recovery When a Factor Has Not Approved Orders

Consider the plight of a manufacturer of women's blouses who sells her finished product to every major department store and specialty store chain in the country.

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