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requiring trustee or debtor-in-possession to timely perform debtor's obligations under commercial lease;
(2) debtor's continued post-rejection use of leased commercial space in order to operate its business plainly conferred benefit on estate, which entitled landlord to administrative expense claim in amount of rent called for under lease;
(3) late charges to which landlord was contractually entitled based upon debtor's delay in paying this rent did not represent any corresponding benefit to the estate, and could not be added to landlord's administrative expense claim;
(4) while commercial landlord's continued removal of snow from parking lot of leased commercial property while debtor continued to occupy it post-rejection benefited estate, landlord was entitled to administrative expense claim only based upon the going rate for such snow removal services;
(5) repair and maintenance expenses that postdated debtor's vacation of premises conferred no benefit on estate; and
(6) landlord was not entitled to administrative expense claim for legal expenses incurred in attempting to evict debtor from premises.
viii. In re Jeans Com, Inc., 502 B.R. 250 (Bankr. D. P.R. 2013)
Issue: Chapter 11 debtor moved for authority to pay certain critical vendors.
Holding: The Bankruptcy Court held that under appropriate circumstances, bankruptcy court may utilize the Bankruptcy Code provisions authorizing use of estate property other than in ordinary course of business, and authorizing court to enter "necessary or appropriate" orders, in order to enter "critical vendor" orders authorizing Chapter 11 debtor, prior to confirmation of plan, to pay its prepetition debts to certain creditors based on critical nature of the goods and services which they provide, in order to preserve going concern value of debtor's business. In this case Chapter 11 debtor would be allowed, prior to confirmation of plan, to pay its prepetition debt to certain critical vendors that were shown to provide it with merchandise in quantities, of quality, and with timeliness and reliability necessary for debtor's business, where vendors had expressed their unwillingness to continue supplying debtor with merchandise unless they were accorded "critical vendor" status, where payment terms were negotiated at arm's-length, and where disfavored creditors, as result of positive effects of "critical vendor" orders in preserving debtor as going concern and allowing it to reorganize, would be at least as well off as result of entry of orders.
ix. In re PMC Marketing Corp., 501 B.R. 17 (Bankr. D.P.R. 2013)
Issue: Whether electricity received by the debtor within twenty days of the petition date qualified as a good or service for a determination of an administrative expense claim.
©2014 William L. Norton III
