Beruflich Dokumente
Kultur Dokumente
Circuit Judges.
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Fernando Van Derdys with whom Jos A. Acosta Grubb and Fiddl
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Gonz lez & Rodr guez were on brief for appellant.
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William M. Vidal Carvajal with whom Antonio I. Hernandez-Rod
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guez and Hernandez & Vidal were on brief for appellee.
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June 11, 1993
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president of
"Electronica" or
appellee
"chapter
La Electronica,
11
debtor"),
("Capo"), former
Inc. (hereinafter:
appeals
the
district
court's
trative
We affirm.
I
I
BACKGROUND
BACKGROUND
__________
Capo filed
for divorce
from Betancourt
in 1987.
At
of
manager.
Electronica entered
ment")
whereby
On
July 22,
into an
Electronica
1988,
Betancourt,
unusual agreement
assumed
joint
Capo
and
("Support Agree-
liability
for
the
petition
and
Agreement.2
requested
discontinued its
Approximately a
payments
year
later, in
June
the Support
1990, Capo
under
11 U.S.C.
"administrative expens-
503(a),(b)(1)(A).
Electronica
503(a),(b)-
opposed the
request.
On November 29, 1990, the
chapter 11 reorganization
"[a]ny
executory
confirmation of
support
contract
not
specifically
shall be deemed
allowed
and alimony
the Plan
contemporaneously
Capo's
Support Agreement, as
rejected
assumed."
request
payments under
to
on
the
The court
recover
accrued
It
an executory contract
not
alia, that
____
the express
the
competing
officers[,]
which could
be
detrimental
to the
concluded
that the accrued support and alimony payments were "necessary for
____________________
determine whether Capo's resignation constituted valid consideration for Electronica's assumption of Betancourt's obligations
under the Support Agreement.
2The
[the] preservation" of
priority treatment
Code
as costs
503(b)(1)(A).
reversed
executory
on the
Electronica appealed.
the Support
"actual,
necessary
hence entitled to
of administration
ground that
costs and
under Bankruptcy
The
district court
Agreement was
not an
of
were
preserving the
503(b)(1)(A).
II
II
DISCUSSION
DISCUSSION
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"Administrative Expense" Priority
"Administrative Expense" Priority
________________________________
In the
concern
ourselves
with
whether the
Support
Agreement
we need not
was an
resignation
as
Electronica's unsalaried
constituted valid
vice-president and
general manager
assumption of
Even assuming
that
the
chapter
11 debtor's
postpetition
president's
financial
obligations
under
constituted
an "actual, necessary
serving the
assumption
the
of its
divorce
decree
of pre-
meaning of section
5 (1st
Cir. 1992)
priority payment
("the
burden of
as an administrative
proving entitlement
expense . . .
rests with
the party
(S.D.N.Y.
1992) (
503(b)(1)(A)
As we have
presumption favoring
Code
provisions
administrative
(citing cases).
priority under
governing
expenses."
640, 642
of proving
ratable distribution
to
among all
holders of
Bankruptcy
requests
for
priority
Hemingway Trans.,
________________
954
payment
F.2d at
of
4-5
consideration supporting
503(b)(1)(A), therefore,
the claimant's
right to
"the
payment [must
____________________
business."
503(b)).
We can
corporate services
i.e., in
____
the
business
form of
operations
diminished
risk of
at the
__ ___
time her
____ ___
ceased.
somehow
to its
petition, viz,
________ ___
Once
"disruption"
not
internal "disruption"
Support Agreement
Id.
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appellant's
request
for "administrative
expense"
priority
503(b)(1)(A), we affirm.4
Affirmed.
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