Is it Time to Revisit Section 503(b)(9)?

Published October 1, 2014
Joseph H. Huston, Jr.
Journal of Corporate Renewal

Section 503(b)(9) of the U.S. Bankruptcy Code is either loved or hated, and sometimes both by the same constituency, depending on who wins or loses regarding administrative claims of suppliers whose claims arose in the 20 days before a bankruptcy filing. The section often yields anomalous or inconsistent results based on only slight variation in fact, some of which are often just the result of good or bad luck. Many commentators have called for the provision’s amendment or outright repeal.

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