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Vendors – take note! The Delaware bankruptcy court In re Reichhold Holdings US Inc. recently issued an important ruling for vendors asserting reclamation rights. Under section 546(c) of the Bankruptcy Code, a vendor may reclaim goods sold on credit to an insolvent debtor that has filed bankruptcy. Reichhold addressed an issue plaguing reclamation claimants:  does a postpetition lender’s subsequently perfected security interest trump the vendor’s reclamation rights when the proceeds from the postpetition loan (“DIP…
Vendors – take note! The Delaware bankruptcy court In re Reichhold Holdings US Inc. recently issued an important ruling for vendors asserting reclamation rights. Under section 546(c) of the Bankruptcy Code, a vendor may reclaim goods sold on credit to an insolvent debtor that has filed bankruptcy. Reichhold addressed an issue plaguing reclamation claimants:  does a postpetition lender’s subsequently perfected security interest trump the vendor’s reclamation rights when the proceeds from the postpetition loan (“DIP…