United States: Business Restructuring Review | Vol. 22 No. 1 | January-February 2023

Lawyer Spotlights: Genna Ghauland Nicholas J. Morin The Year in Bankruptcy : 2022 A brief chronicle of the year’s notable developments in corporate bankruptcy and restructuring, including business bankruptcy filings, significant court rulings and bankruptcy legislation. [ read more … ] First Impressions: The Eleventh Circuit Examines 20-Day Administrative Expense Claims and the Subsequent New Value Preference Defense Because the claims of vendors who provide goods to a debtor during the 20 days before it files for bankruptcy are conferred with administrative expense priority—a designation otherwise almost exclusively limited to claims against a debtor that arise after the bankruptcy petition date—courts sometimes disagree over whether a preference defendant can use the same value to assert such a "20-day claim" and to offset its preference liability under the "subsequent new value" defense. The U.S. Court of Appeals for the Eleventh Circuit recently addressed this question as a matter of first impression in Auriga Polymers Inc. v. PMCM2, LLC , 40 F.4th 1273 (11th Cir. 2022). It held that a preference defendant may use the same value to assert a 20-day claim that it can use to offset its preference liability under the subsequent new value defense. In so ruling, the […]

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