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Several months ago, in Capital Factors Inc. v. Kmart Corp. , the U.S. District Court for the Northern District of Illinois addressed whether a bankruptcy court could authorize a debtor-in-possession to pay "critical vendors" for pre-petition debts. The issue in Capital Factors arose when the bankruptcy court issued an order allowing Kmart to pay the pre-petition claims of vendors deemed by Kmart to be critical vendors.
March 11, 2004 at 12:00 AM
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The original version of this story was published on Law.Com
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