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In re FasTech Servs.

In re FasTech Servs.

Ruling
Postpetition, preconversion interest on union funds' claims for unpaid contributions were entitled to priority status, although claim for damages was not.
Procedural posture

Debtor corporation declared chapter 11 bankruptcy and operated its business as a debtor-in-possession from April 2010 until June 2011, when its case was converted to one under chapter 7 of the Bankruptcy Code. A union pension fund and a union welfare fund filed claims against the debtor's bankruptcy estate and sought a determination that their claims were entitled to priority status under 11 U.S.C.S. §§ 507(a)(2) and 503(b)(1)(A).

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Commercial opinion summary, case decided on April 09, 2012 , LexisNexis #0512-008