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IN RE BROWN & COLE STORES, LLC

BAP No. WW-07-1123-MoDJ, Bankruptcy No. 06-13950-SJS.

375 B.R. 873 (2007)

In re BROWN & COLE STORES, LLC, Debtor. Brown & Cole Stores, LLC, Appellant, v. Associated Grocers, Inc.; Official Unsecured Creditors Committee; Harris Bank, N.A., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed August 17, 2007.

Attorney(s) appearing for the Case

Armand J. Kornfield, Bush, Strout & Kornfield, Seattle, WA, for Brown and Cole Stores, LLC.

Jack J. Cullen, Foster, Pepper, PLLC, Seattle, WA, for Associated Grocers, Inc.

Before: MONTALI, DUNN and JAROSLOVSKY, Bankruptcy Judges.

OPINION

MONTALI, Bankruptcy Judge.

This case presents us with an issue of first impression regarding new section 503(b)(9) ("§ 503(b)(9)") of the Bankruptcy Code, as amended in 2005.2 We expect that the issue is of great importance to many sellers of goods to troubled companies. The new provision gives expense-of-administration priority ("administrative priority") to a claim for the value of goods received by a debtor within...

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