Debate Intensifies on Substantial Contribution Claims in Chapter 7 Cases

To encourage creditors, equity interest holders, indenture trustees, and unofficial committees to take actions that benefit a chapter 9 or chapter 11 estate, the Bankruptcy Code confers administrative expense status on claims for expenses incurred by them in making a "substantial contribution" in such cases. Administrative expense status is also given to claims for reimbursement of reasonable professional fees incurred by such entities in making a substantial contribution....
By: Jones Day

Array