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Bankruptcy courts increasingly have allowed Chapter 11 debtors to fully pay the pre-petition debts they owe to suppliers of essential goods or services as a part of their first-day orders, orders the court issues at the outset of a bankruptcy case. But critical-vendor payments face formidable objections. Kmart's Chapter 11 case, filed in the U.S. Bankruptcy Court for the Northern District of Illinois, shows these considerations at work.
February 24, 2005 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
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