Administrative Claims in Bankruptcy: Standards for Allowance, Amount, Disgorgement, Limitations, and Bootstrapping
Restructuring & Finance Litigation co-chair Stephen B. Selbst and partner Steven B. Smith will present a CLE webinar discussing the allowance of administrative expense claims, which have priority over all other unsecured claims and must be paid in full before other lower-priority claims are paid. The panel will discuss what expenses may or may not qualify, and in what amounts, how creditors can slip approval of administrative expense priority into first-day and other orders, whether the administrative claim is subject to further limitation or disgorgement, and related matters. The panel will offer strategies useful to creditor counsel and indenture trustees to plan accordingly and strategies for other stakeholders who may wish to prevent the allowance of administrative claims that do not meet the appropriate standards.
The team will review pivotal issues about administrative expense claims, such as:
- What is a substantial contribution, and is it always required to achieve administrative priority?
- May a bankruptcy court authorize a debtor to pay creditors' fees and expenses under Section 363(b) or 365?
- What happens if the case is converted to Chapter 7?
- Does the same standard for allowance apply to claims in Section 503(b)(3)(A) through (F) and 503(b)(4)?