Recent court decision impacts suppliers dealing with bankrupt customers
May 19, 2010
less than 1 minute
In a recent decision by the 11th Circuit Court of Appeals, the Court held that a bankruptcy trustee may avoid post-petition payments by a debtor under 11 U.S.C. § 549(a) and § 363(c)(2) as unauthorized transfers of cash collateral, and that the trustee may avoid the debtor’s unauthorized post-petition transfers of cash collateral.
If that description seems less that crystal clear, Bill Schwartz and Jonathan Friedland help demystify the ruling of In re Delco Oil and the effect that this holding could have on you and your business.