In re Plej's Linen Supermarket SoEast Stores LLC, Case No. 05-35484 (Bankr. W.D.N.C. March 21, 2006)(Hodges) - This matter came before the court upon the debtors' objection to claims in which the debtors sought to have the Bankruptcy Administrator's claims for quarterly fees allowed in full but reclassified from priority to unsecured. The court found that the Bankruptcy Administrator had not met his burden of showing that the quarterly fees were "actual necessary costs and expenses of preserving the estate" under 11 U.S.C. § 503(b)(1)(A). However, the court overruled the debtors' objection and required the debtors to treat the Bankruptcy Administrator's claims as priority given the equities of the situation.

IN RE FRED S. KAHN COMPANY, Case No. 91-50483 (Bankr. W.D.N.C., Oct. 18, 1994)(J. Whitley) - Chapter 11 quarterly fees that are payable to the U.S. Trustee pursuant to 28 U.S.C. 1930 are administrative expenses under 11 U.S.C. 507(a) that are subordinated to Chapter 7 administrative claims by 11 U.S.C. 726(b) after a subsequent conversion. Note: This case was appealed and subsequently settled, and as a provision of the settlement, Judge Whitley vacated his Order. However, his ruling is a good indication of how the Court feels about this issue.