Keep Your Friends Close, but Keep Your Critical Vendors Closer

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The Seventh Circuit Court of Appeals’s 2004 decision in Kmart is the most frequently cited case on critical-vendor motions. In Kmart, the Seventh Circuit, in an opinion authored by Hon. Frank Easterbrook, affirmed a district court order setting aside a bankruptcy court order approving critical-vendor payments.

Originally Published in the ABI Journal, Vol. XXXIX, No. 8 - August 2020.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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