WASHINGTON -- In a case involving the liquidation of ZZZZ Best Co., the Supreme Court broadened the ability of creditors to keep long-term-loan payments made by companies that later go bankrupt.

The justices said Union Bank of San Francisco may be able to keep two interest payments totaling $100,000 that ZZZZ Best made in the months before it declared itself insolvent under Chapter 7 of the federal bankruptcy code. A lower court will make the final determination.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.