Third Circuit Holds That Vendor Must Have Physical Possession of Goods For Administrative Expense Priority Claim Pursuant to Section 503(b)(9) of the Bankruptcy Code
By Michael L. Moskowitz and Melissa A. Guseynov
In a recent opinion, the Court of Appeals for the Third Circuit reversed the lower courts’ rulings by holding that a debtor “receives” goods for purposes of section 503(b)(9) of the Bankruptcy Code when the debtor obtains physical possession of those goods. In re World Imports, Ltd., 862 F. 3d 338 (3d. Cir. 2017). Read the full opinion here.