Bankruptcy Court Finds “Critical Vendor” Label Provides No Insulation from Preference Claims

Admin on September 15, 2021 Posted in Bankruptcy News, Blog, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

In what could likely end up an influential ruling, a Delaware court recently held that securing a “critical vendor” status in Chapter 11 commercial bankruptcy case ultimately offers no defense in situations where the vendor later faces legal action for the recovery of preferential payments that the debtor recoups shortly before bankruptcy. The Role of […]