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February 23-27, 2004
 

Date2004/03/01 Mon PM 12:04:42 CST
Bankruptcy Case Law-
BANKRUPTCY CASE SUMMARIESFebruary 23-27, 2004

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* IN THE MATTER OF KMART CORP.

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U.S. 7th Circuit Court of Appeals
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IN THE MATTER OF KMART CORP. (02/24/04 - No. 03-1956)
Bankruptcy judge erred in permitting debtor to pay in full its
pre-petition debts to any vendor deemed "critical" in its unilateral
estimation. Preferential payments to a class of creditors are proper
only if the record shows the prospect of benefit to the other creditors.

To read the full text of this opinion, go to:[PDF File]
http://caselaw.lp.findlaw.com/data2/circs/7th/031956p.pdf

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