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Vendor's Reclamation Rights Survive Lien of Post-Petition DIP Loan

In <i>In re Reichhold Holdings US</i>, bankruptcy judge Mary F. Walrath upheld the validity of a vendor's administrative claim for its reclamation rights under Section 546(c) of the Bankruptcy Code as against a post-petition DIP lender. In doing so, Judge Walrath declined to follow cases from the Bankruptcy Court of the Southern District of New York that held otherwise.

13 minute read November 01, 2016 at 12:02 PM
By
Barry M. Klayman and Mark E. Felger
Vendor's Reclamation Rights Survive Lien of Post-Petition DIP Loan

In In re Reichhold Holdings US, Inc., Case No. 14-12237 (MFW) (Bankr. Del., Aug. 24), bankruptcy judge Mary F. Walrath upheld the validity of a vendor's administrative claim for its reclamation rights under Section 546(c) of the Bankruptcy Code as against a post-petition DIP lender.

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