Goods, and (iv) the Debtors have determined, in accordance with the Reclamation Procedures, the Vendor holds a valid Reclamation Claim pursuant to section 546(c) of the Bankruptcy Code. 16.
In all other cases, the Debtors request the Court to enjoin Vendors and
other parties from seeking to reclaim or otherwise interfere with the delivery of Goods. Such relief will facilitate the uninterrupted operation of the Debtors’ business. Basis for Relief 17.
Absent the relief requested in this Motion, the Debtors will expend
substantial time and limited resources establishing their right to retain Goods, and contesting or litigating reclamation demands. The inevitable result will be delay and disruption in the continuous flow of Goods to the Debtors. Any such material delay or disruption will, in turn, cause considerable harm to the Debtors’ business operations, thereby imperiling the Debtors’ restructuring efforts.. Consequently, the relief requested herein is in the best interests of the Debtors, their estates, and all parties in interest.
A.
The Proposed Reclamation Procedures Are Appropriate Under Sections 105(a) and 546(c) of the Bankruptcy Code 18. Section 546(c)(1) of the Bankruptcy Code provides, in relevant part: the rights and powers of the trustee. . . are subject to the right of a seller of goods that has sold goods to the debtor, in the ordinary course of such seller’s business, to reclaim such goods if the debtor has received such goods while insolvent, within 45 days before the date of commencement of a case under this title, but such a seller may not reclaim such goods unless such seller demands in writing reclamation of such goods (A) not later than 45 days after the date of receipt of such goods by the debtor; or (B) not later than 20 days after the date of commencement of the case, if the 45-day period expires after the commencement of the case.
DOCS_DE: 172973.2