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<a href="http://www.accessmylibrary.com/coms2/summary_0286-25185800_ITM" title="Facts and information about Protection for trade creditors from Chapter 11 debtor's refusal to accept goods under post-petition contract: An administrative priority claim. (Business Law).(court cases review and interpretation)">Protection for trade creditors from Chapter 11 debtor's refusal to accept goods under post-petition contract: An administrative priority claim. (Business Law).(court cases review and interpretation)</a>
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Protection for trade creditors from Chapter 11 debtor's refusal to accept goods under post-petition contract: An administrative priority claim. (Business Law).(court cases review and interpretation)
Introduction
A trade creditor doing business with a chapter 11 debtor may be faced with the following situation. The debtor placed an order for specially made goods to fill an order from one of its customers. After the creditor incurs the expense of manufacturing or purchasing the goods and is ready to deliver the goods, the debtor announces that it is no longer willing to accept delivery of the goods and repudiates its post-petition contract with the creditor. The debtor may be responding to a declining market for the goods, or perhaps the debtor's customer has cancelled its order with the debtor, and the debtor is attempting to pass its loss on the sale to the ...
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