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Administrative Expense Priority of Post-Petition Lease Payments

Feb 06 2019

Administrative Expense Priority of Post-Petition Lease Payments

A recent decision, Kimzey v. Premium Casing Equipment LLC,1 reveals growing tension over the appropriate post-petition treatment of a lessor’s administrative expense claim if the debtor rejects the lease. Kimzey also highlights a circuit split over whether actual post-petition use of leased equipment is a condition precedent to the allowance of an administrative expense claim under § 503 (b) (1) (A).

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