Section 546 of the Bankruptcy Code was amended with the enactment of the BAPCPA. The new provisions provide sellers of goods with a 45-day window for reclamation, instead of incorporating the 10 day window in the Uniform Commercial Code, require that the goods be sold in the ordinary course of the seller’s business, requires the reclamation demand must be made in writing, etc. See the In the Red Blog for a more thorough summary of the new provisions.
The first case interpreting the new provision is out – Simon & Schuster, Inc. v. Advanced Marketing, Inc. (In re Advanced Marketing, Inc.), Adv. No. 07-50004 (Bankr. D. Del. Jan. 22, 2007). Bob Eisenbach, Esq. at the In the Red Blog has analyzed the opinion and new Code section, and provided links to pleadings. In summary, the Court denied the seller’s request for a Temporary Restraining Order, finding that the secured creditor’s pre-petition and post-petition rights were superior to the seller’s right of reclamation. As Bob states, this opinion is important because it is the first one (that we know of) on the subject.