IN THE MATTER OF KMART CORP., 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.
- Argued 01/22/2004
- Decided 02/24/2004
- Published 02/24/2004
- EASTERBROOK, Circuit Judge., Before EASTERBROOK, MANION, and ROVNER, Circuit Judges.
- United States Seventh Circuit
- For Appellant:
- Richard C. Godfrey (argued), Kirkland & Ellis, Chicago, IL, for intervenor-appellant., Andrew N. Goldman, Wilmer, Cutler & Pickering, New York, NY, William J. Barrett, Barack, Ferrazzano, Kirschbaum, Perlman & Nagelberg, Chicago, IL, for debtor-appellant., George Eric Brunstad, Jr., Bingham McCutchen, Hartford, CT, for appellant Irving Pulp & Paper, Limited., Joseph D. Frank (argued), Neal, Gerber & Eisenberg, Chicago, IL, for appellant Knight-Ridder, Inc., Kevin D. Finger, Greenberg Traurig, Chicago, IL, for amicus curiae Meridian Retail Inc.
- For Appellees:
- Steven B. Towbin (argued), Peter J. Roberts, Shaw, Gussis, Fishman, Glantz, Wolfson & Towbin, Chicago, IL, for appellee.