Winter Leadership Conference | December 5-7 | Rancho Palos Verdes , CA Register Today View Schedule

§ 547

Official Committee of Unsecured Creditors of 360networks (USA) Inc. v. U.S. Relocation Servs. Inc. (In re 360networks Inc.)

Plaintiff bankruptcy debtors brought an adversary proceeding against defendant relocation service company, seeking to recover as preferential transfers payments made by the debtors to the company for the company's services under a contract to assist in relocating the debtors'employees. The parties'cross-moved for summary judgment with regard to the company's defenses under 11 U.S.C. §§ 547(c)(1), (2).
Ruling: 
A company helping debtors relocate their employees did not show in a transfer avoidance proceeding that transfers were made in the ordinary course of business, but the court ruled that it was unclear regarding whether its services constituted contemporane
ABI Membership is required to access the full summary of Official Committee of Unsecured Creditors of 360networks (USA) Inc. v. U.S. Relocation Servs. Inc. (In re 360networks Inc.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Official Comm. of Unsecured Creditors of J. Allan Steel Co. v. Nucor-Yamato Steel Co. (In re J. Allen Steel Co.)

Appellee, a committee of unsecured creditors, filed an adversary proceeding against appellant steel supplier seeking to recover payments that a Chapter 11 debtor had made during the 90-day period before the bankruptcy petition was filed. The supplier appealed after the bankruptcy court granted partial summary judgment to it and thereafter entered a judgment in the committee's favor.
Ruling: 
Case was remanded for clarification of whether alleged preferential payments were made in the ordinary course of business or made pursuant to ordinary business terms and thus not preferential.
ABI Membership is required to access the full summary of Official Comm. of Unsecured Creditors of J. Allan Steel Co. v. Nucor-Yamato Steel Co. (In re J. Allen Steel Co.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Jin Lim v. Chase Home Fin. LLC (In re Comps)

Plaintiff chapter 7 trustee filed a complaint against defendant creditor, seeking to set aside a mortgage as a preferential transfer under 11 U.S.C. § 547(b), and seeking to disallow the creditor's claim under 11 U.S.C. § 502(d) unless it turned over the transferred property. Both sides sought summary judgment.
Ruling: 
Mortgage was not a preferential transfer since the mortgage was perfected within 10 days of the transfer and thus was not a transfer on account of an antecedent debt.
ABI Membership is required to access the full summary of Jin Lim v. Chase Home Fin. LLC (In re Comps). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Brown v. Leslie Kitchenmaster & Kot Inc. (In re Hertzler Halstead Hosp.)

Plaintiff trustee sued defendant, an individual and a corporation, under 11 U.S.C. §§ 547 and 548 to avoid and recover alleged preferential and fraudulent transfers made to them by the debtor prior to the date of debtor's bankruptcy petition.
Ruling: 
Creditor could not avoid recovery of preferential transfers since the payments were not intended to be contemporaneous exchanges for new value but rather satisfied an antecedent debt.
ABI Membership is required to access the full summary of Brown v. Leslie Kitchenmaster & Kot Inc. (In re Hertzler Halstead Hosp.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Ogier v. Trautman (In re Express Factors)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant creditor, a lender, alleging that loan repayments made by the debtor to the lender were avoidable as preferential transfers. The trustee and the lender cross moved for summary judgment with regard to the lender's defense that the transfers were made in the ordinary course of business under 11 U.S.C. § 547(c)(2).
Ruling: 
Only one of three loan payments were made in the ordinary course of business and thus two of the payments were deemed avoidable preferential transfers.
ABI Membership is required to access the full summary of Ogier v. Trautman (In re Express Factors). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Davis v. Charlies Care Inc. (In re Cruth)

Plaintiff trustee filed an adversary proceeding against defendant creditor, which sought to avoid a lien on a car as a preferential transfer under 11 U.S.C. § 547(b).
Ruling: 
Trustee was able to avoid creditor's lien on debtor's car as a preferential transfer since the creditor delayed in perfecting the security interest until during the 90-day prefiling lookback period.
ABI Membership is required to access the full summary of Davis v. Charlies Care Inc. (In re Cruth). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Richardson v. Ford Motor Credit Co. (In re Casias)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid certain payments as preferences. The issue was whether the trustee could avoid as a preference wages paid to a judgment creditor within 90 days of the debtor's bankruptcy where a state court wage deduction order was entered more than 90 days before the bankruptcy was filed.
Ruling: 
Wages paid to judgment creditor within preference period pursuant to judgment order entered prior to preference period were avoidable transfers since the debtor obtained the interest in the wages after performing work.
ABI Membership is required to access the full summary of Richardson v. Ford Motor Credit Co. (In re Casias). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Savage & Assocs. P.C. v. A.I. Credit Corp. (In re Teligent Inc.)

Plaintiff representative of unsecured creditors of reorganized bankruptcy debtors brought an adversary proceeding against defendant, a company which financed insurance premiums, alleging that the debtors' payments to the company for financing its business insurance premiums constituted preferential transfers under 11 U.S.C. § 547. The company moved for summary judgment.
Ruling: 
Debtors'payments to a company for financing the debtors'business insurance premiums were not preferential transfers since the company was oversecured and had properly perfected its security interest.
ABI Membership is required to access the full summary of Savage & Assocs. P.C. v. A.I. Credit Corp. (In re Teligent Inc.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Gordon v. NovaStar Mortg. Inc. (In re Hedrick)

Plaintiff chapter 7 trustee in bankruptcy sought to avoid as a preference, a security deed recorded for the benefit of defendant lender against debtors'residence that secured a refinancing loan, pursuant to 11 U.S.C. § 547. The trustee asserted that the recording was a transfer of an interest in debtors'property within the 90-day period preceding the bankruptcy, made while debtors were insolvent. Both parties moved for summary judgment.
Ruling: 
Creditor's loan security deed was not an avoidable preference since the security deed was effective not on its recording but on the date of execution, which was prior to 90-day lookback period, and under equitable subordination doctrine.
ABI Membership is required to access the full summary of Gordon v. NovaStar Mortg. Inc. (In re Hedrick). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Value Music Concepts

Plaintiff, in his capacity as the creditor representative appointed pursuant to 11 U.S.C. § 1123(b)(3) under debtors'confirmed chapter 11 plan, sued defendant creditors, seeking to recover, pursuant to 11 U.S.C. § 547(b), alleged preferential transfers for the benefit of unsecured creditors. Defendants moved for summary judgment.
Ruling: 
Creditor representative could pursue preference avoidance actions on debts assumed under a settlement agreement between debtors and creditors two weeks before chapter 11 filings.
ABI Membership is required to access the full summary of In re Value Music Concepts. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Pages

Subscribe to § 547