Bankr. No.:
00-10053
Chapter:
7
Date of Decision:
March 5, 2004
Issue:
Whether Debtor’s principal was entitled to an administrative expense claim for a loan he made to Debtor pre-petition to pay a retainer to Debtor’s bankruptcy attorney just as the case was being commenced under Chapter 11?
Ruling:
The principal was not entitled to an administrative expense claim. The principal claimed the loan was made pre-petition; therefore, he had an unsecured, pre-petition claim, not an administrative expense claim, for the repayment of a loan made, with court approval, during the Chapter 11 administration.
Full Bankruptcy Court Decision:
