For any supplier and other bankruptcy creditor in the bankruptcy of Contech U.S., LLC , timely and properly filing an administrative expense claim under 11 USC § 503(b)(9) may provide the only prospect for payment of any portion of the creditors prepetition claims. Click this link for an article on this site discussing 503(b)(9), including answers to the most common questions regarding making these claims.
The Bankruptcy Court in Contech has entered an order establishing a bar date of 5:00 p.m., prevailing Eastern time, on June 8, 2009 for claims asserted under section 503(b)(9) of the Bankruptcy Code. The same order establishes the required content for any such claim and the procedures for making the claim. Click the following link to see a copy of the bankruptcy court’s notice directed to “TO: ALL CREDITORS, EQUITY INTEREST HOLDERS, AND POTENTIAL HOLDERS OF ADMINISTRATIVE CLAIMS UNDER BANKRUPTCY CODE SECTION 503(b)(9) AGAINST THE DEBTORS.“
The requirements for and manner of delivery of the proof of claim are stated in the order. One point deserves special mention. The order states:
Any Entity asserting Claims against more than one Debtor must file a separate proof of claim with respect to and in the case of each such Debtor. In addition, any Entity filing a proof of claim must identify on its proof of claim form the particular Debtor against which its Claim is asserted and that Debtor’s case number.
Make sure you know your customer and file the proof of claim naming that customer and that debtors case number.
The bankruptcy creditors in this case can expect strict scrutiny of any claim filings and strict enforcement of the bar date and content and delivery requirements. When a case is on the brink of administrative insolvency, like Contech’s, every effort is made to limit the number of administrative priority claims under 503(b)(9).
We point out that in the bankruptcy of Dana Corp. Goodyear had a section 503(b)(9) claim in the amount of $1,401,053.85 for goods delivered to the Debtors during the 20 days prior to the Debtors’ bankruptcy filing. The Bankruptcy Court had entered an order establishing a bar date. Goodyear filed their 503(b)(9) claim after the bar date. The court denied the claim on the grounds that it was made after the bar date. OUCH. But what is even more surprising is that in denying Goodyear’s claim, the court noted that 800 other creditors had also filed their claims late.
Bottom line – get your company’s 503(b)(9) claim in ASAP (and in all events before the bar date) and follow the court’s order regarding procedures to the letter.
FN Case No. 09-42392 is administratively consolidated. The debtors are MAG Contech, LLC, Contech, LLC and Contech U.S., LLC.