In the Matter of Kmart Corp., where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that the decision of the bankruptcy judge was:

Question

Quizplus · Accepted Answer

The appeals court held that the decision to prioritize payments to "critical vendors" first was improper because it violated the structured payment schedule outlined in the Bankruptcy Code, which dictates the order in which creditors should be paid during the bankruptcy process.