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In re Old Carco LLC

In re Old Carco LLC

Ruling
Auto dealers' rejection damages claims not entitled to administrative expense priority.
Procedural posture

Movants, domestic auto dealers affected by the debtors' rejection of certain executory sales and service agreements, filed a motion seeking administrative expense priority for damages they sustained as a result of the debtors' rejection of those contracts. The debtors argued that any such claims were pre-petition general unsecured claims pursuant to 11 U.S.C.S. § 365(g).

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Commercial opinion summary, case decided on January 05, 2010 , LexisNexis #0210-005