In Re Tropical Sportswear Int'l Corp.

MEMORANDUM DECISION AND ORDER APPROVING PAYMENT OF CRITICAL VENDORS

MICHAEL G. WILLIAMSON, Bankruptcy Judge.

“[S]atisfaction of a pre-petition debt in order to keep ‘critical’ supplies flowing is a use of property other than in the ordinary course of administering an estate in bankruptcy” under section 363(b)(1) of the Bankruptcy Code. In re Kmart Corporation, 359 F.3d 866, 872 (7th Cir.2004). However, because payment to certain critical vendors under such circumstances results in disparate treatment of unsecured claims, “it is prudent to read, and use, § 363(b)(1) to do the least damage…