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Eggman v. Parker-Hannifin Corp. (In re PJM Enters. of Marion)

Eggman v. Parker-Hannifin Corp. (In re PJM Enters. of Marion)

Ruling
Postpetition payment of prepetition debt that was authorized by court prior to conversion from chapter 11 to chapter 7 was not avoidable.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendant creditor, seeking a determination that a transfer a corporate debtor made to the creditor postpetition was avoidable under 11 U.S.C.S. § 549, an order under 11 U.S.C.S. § 550 which required the creditor to repay the amount it received. The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on January 12, 2010 , LexisNexis #0210-017