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Case 1:20-bk-12043 Doc 628 Filed 03/02/21 Entered 03/02/21 11:09:01 Desc Main <br />Document Page 7 of 10 <br />11 U.S.C. § 507(a)(2). "The purpose of [§ 503(b)(1)(A)] is to facilitate the rehabilitation of <br />insolvent businesses by encouraging third parties to provide those businesses with necessary goods <br />and services." In re Highland Grp., Inc., 136 B.R. 475, 480 (Bankr. N.D. Ohio 1992) (citing In <br />re Mammoth Mart, Inc., 536 F.2d 950, 954 (1st Cir. 1976)). <br />Under § 503(b)(1)(A), "a debt qualifies as an `actual, necessary' administrative expense <br />only if (1) it arose from a transaction with the bankruptcy estate and (2) directly and substantially <br />benefitted the estate." Murphy v. Madden (In re Energy Conversion Devices, Inc), No. 15-1734, <br />2016 U.S. App. LEXIS 4414, at *8 (6th Cir. Feb. 19, 2016) (quoting Caradon Doors & Windows, <br />Inc. v. Eagle-Picher Indus., Inc. (In re Eagle-Picher Indus., Inc.), 447 F.3d 461, 464 (6th Cir. <br />2006) (internal citation and quotation marks omitted)). "[G]iven that the bankruptcy estate ... <br />includes leasehold interests from the outset of the case, it is difficult to imagine a more actual or <br />necessary expense of preserving that estate than the payment of the very rent that nonbankruptcy <br />law clearly recognizes as an absolute condition to the estate's continued possession of the property <br />leased." In re Sturgis Iron & Metal Co., 420 B.R. 716, 724-25 (Bankr. W.D. Mich. 2009). <br />"[W]hatever rent does accrue [post -petition] would unquestionably be the estate's obligation to <br />pay given that the estate under the Bankruptcy Code is ... immediately assigned the tenant's <br />responsibilities when a case is commenced." Id. at 741. Therefore, "the bankruptcy estate, being <br />... the recognized successor to the debtor's leasehold rights immediately upon the commencement <br />of the case, must ... pay under Section 503(b)(1)(A) the agreed upon rent due the lessor as an <br />actual and necessary expense of preserving the estate's rights under the lease." Id. at 756. <br />Upon information and belief, the Debtors in these bankruptcy cases, as debtors in <br />possession, made the business decision to, and did, use the Leased Equipment to further their <br />operations between the Petition Date and the Rejection Date, under the terms of the Caterpillar <br />7 <br />