Westlaw Headnote of the Day – November 24, 2010

November 24, 2010

West's Key 51 Bankruptcy
West's Key 51VII Claims
West's Key 51VII(C) Administrative Claims
West's Key 51k2872 k. Reorganization Cases.

51 BankruptcyElectricity that utilities supplied to Chapter 11 debtor within 20 days prior to petition date was in nature of “good,” for whose value utilities could assert administrative priority claim; while the movement was so fast as to be almost instantaneous, electricity was plainly moveable, and was in fact moving from utilities’ power lines to debtor’s facility, at time that it was metered and became identifiable to supply agreements between parties, thereby satisfying the Uniform Commercial Code (UCC) definition for “good,” since there was nothing in administrative priority provision of the Bankruptcy Code or in the UCC requiring that movement occur at any particular speed.

In re Grede Foundries, Inc., 435 B.R. 593 (Bankr. W.D. Wis. 2010)

Suggested by Barbara A. Bozonie, West Attorney Editor