In the Matter of Kmart Corp

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:

A) within the scope of judgment allowed in an effort to keep a business functioning
B) proper because the critical vendors were the secured creditors with preference
C) proper so long as the proceeds of future sales were dedicated to non-critical vendors
D) improper because of evidence of fraud in dealings by Kmart executives with vendors
E) none of the other choices