Mediofactoring v. McDermott (In Re Connolly North America, LLC)

The question presented in this appeal is a purely legal one: does § 503(b) of the Bankruptcy Act of 1978 (“Bankruptcy Code”) authorize a bankruptcy court to reimburse a creditor for costs incurred in *820providing a “substantial contribution” to the administration of a bankruptcy estate and to classify that reimbursement as an administrative expense? The bankruptcy court that considered Coface’s request for such a reimbursement decided that the answer was no. On - appeal, the district court agreed with that conclusion. The majority reverses, concluding that § 503(b), though not expressly…