- 11 U.S.C.
Ciesla v. Harney Mgmt. Partners (In re KLN Steel Prods. Co.)
Feb
18
2014
Ruling
Transfers to restructuring consultant avoided as preferential but with credit for unpaid services, which were covered by the new value defense.
Issue(s)
Whether payments to restructuring consultants hired to advise debtor business prior to its bankruptcy filing could be avoided as preferential or whether those payments are protected from recovery by the "ordinary course of business" or "new value" defenses?
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Court
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