Issue link: https://mbozikis.ufcontent.com/i/1422521
123 § 546(c)(1). This right of reclamation is subordinate to a secured creditor that holds a prior lien on collateral or proceeds of such collateral. Allegiance Healthcare Corp. v. Primary Health Sys. (In re Primary Health Sys.), 258 B.R. 111, 117 (Bankr. D. Del. 2001). To complete reclamation, the seller must provide written demand for reclamation of the goods within forty-five days after receipt of the goods by the debtor or twenty days after the petition date if the forty-five day period expires after the petition date. 11 U.S.C. § 546(c)(1). If the seller fails to provide such written notice, the seller may still assert an administrative expense claim for the value of any goods received by the debtor within twenty days before the commencement of the case pursuant to Section 503(b)(9). 11 U.S.C. § 546(c)(2). Section 546 further provides that in Chapter 11 cases, with the seller's consent and subject to the prior rights of holders of security interests in goods shipped to the debtor prepetition, the court may order that such goods be returned to the seller and the seller may offset the purchase price against any prepetition claim of the seller against the debtor. 11 U.S.C. § 546(h). This right is contingent on the court's determination, on a motion of the trustee made within 120 days after the date of the order for relief, that a return of the goods is "in the best interests of the estate." Id. Finally, as discussed further below in Chapter V.G.1., Section 546 prohibits a trustee from avoiding certain transfers made to qualified persons under commodity contracts, forward contracts, securities contracts, swap agreements, repurchase agreements, and master netting agreements unless such transfers were actually fraudulent. 11 U.S.C. § 546(e), (f), (g), (j). 7. Turnover A trustee may also use its turnover power to bring into the estate property in which the debtor did not have a possessory interest at the time the bankruptcy proceedings were commenced. 11 U.S.C. § 542. Section 542(a) requires that, subject to certain exceptions set forth below, all entities, other than custodians, having possession, custody or control of property that the trustee