In re Lehman Bros. Holdings
May
12
2009
Ruling
Funds transferred by creditor bank to debtor's account after petition was filed were not subject to setoff.
Procedural posture
A bankruptcy debtor owed a loan debt to a foreign bank and the bank sought to set off funds in the debtor's account against such debt under 11 U.S.C.S. § 553(a). The debtor asserted that the funds were not transferred to the debtor's account by an affiliate of the debtor until after the debtor's bankruptcy petition was filed, and thus the funds were not available for setoff.
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Court
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