Article: Secured Lenders Versus Reclaiming Vendors: An Analysis of Sixth Circuit's Phar-Mor Decision
8/11/2009 Colin T. Darke
In a Chapter 11 bankruptcy case, bankruptcy courts balance the inter-ests of several parties: debtors, employees, creditors, vendors, etc. The trend among bankruptcy courts was to balance the interests of secured lenders versus reclaiming vendors in the secured lenders’ favor. The Sixth Circuit Court of Appeals’ decision in Phar-Mor, Inc. v. McKesson Corp. goes against this trend.
