Book Description
This digital document is an article from Business Credit, published by National Association of Credit Management on May 1, 2002. The length of the article is 2768 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation Details
Title: The Kmart trade lien program--is it what it is cracked up to be? (Business Law).(Statistical Data Included)
Author: Bruce S. Nathan
Publication: Business Credit (Magazine/Journal)
Date: May 1, 2002
Publisher: National Association of Credit Management
Volume: 104 Issue: 5 Page: 30(4)Article Type: Statistical Data IncludedDistributed by Thompson Gale
Excerpt. © Reprinted by permission. All rights reserved.
Introduction A company's need for trade credit only increases when it encounters financial difficulties, and particularly when it flies a Chapter 11 petition. That leaves a trade creditor between a rock and a hard place. The Bankruptcy Code offers a trade creditor limited protection by granting an administrative priority claim for any unpaid trade credit extended during the bankruptcy case. This claim is payable ahead of the claims of general unsecured creditors and lower level priority creditors. Unfortunately, an administrative priority claim may be of little or no benefit in the face of a lender's blanket security interest in the debtor's assets and superpriority administrative claim that is payable ahead of the claims of all the...
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