California Self-Insurers' Security Fund v. Lorber Industries (In Re Lorber Industries)

OPINION

BRANDT, Bankruptcy Judge.

Post-petition, the chapter 11 2 debtor, which had self-insured its state statutory workers’ compensation obligations, defaulted on those obligations. The state fund established by statute to make the defaulting debtor’s compensation payments objected to the debtor’s plan, arguing that its claim was entitled to priority as an excise tax under § 507(a)(8)(E). The bankruptcy court overruled the objection, concluding that the debtor’s reimbursement obligation was an excise tax, but that the transaction date was when the debtor was granted self-insured status, more…