Reclamation Rights in Bankruptcy | Practical Law
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This Practice Note discusses the reclamation rights of unpaid sellers of goods to insolvent buyers who later file for bankruptcy, including the elements of, and defenses to, a reclamation claim. This Note also discusses the procedure for asserting a reclamation claim in bankruptcy, the remedies available to a successful reclaiming seller, the section 503(b)(9) administrative expense claim as an alternative remedy to reclamation, and pre- and post-bankruptcy strategies for sellers of goods to financially troubled buyers.