Womble Bond Dickinson Partners Wojciech Jung and Ed Schnitzer have written a new article on “Do Contingent § 503(b)(9) Claims Exist?” for the May 2024 issue of the American Bankruptcy Institute (ABI) Journal.

Section 503(b)(9) of the Bankruptcy Code provides a trade creditor with an administrative claim for the value of unpaid goods sold to the debtor in the ordinary course of business and received within 20 days before the petition date for what otherwise would have been treated as a general unsecured claim. However, this treatment is not absolute. This article provides an overview of the impact of avoidance provisions on the applicability and interplay of §§ 503(b)(9) and 502(h), which mandates that a claim created by the avoided preference under § 547 be treated as if it had arisen pre-petition.

Click here to read the full article.