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§ 547(b)(4)

Carl Zeiss Meditec AG v. Anstine (In re U.S. Med. Inc.)

Appellant, a creditor, sought review of a decision of the Bankruptcy Court for the District of Colorado, entered in favor of appellee, the chapter 7 trustee, after ruling that the creditor was a non-statutory insider to the debtor. The trustee was allowed to avoid certain transfers from the debtor to the creditor, which were found to be preferential pursuant to 11 U.S.C. §§ 547(b)(4)(B) and 550(a)(1).
Ruling: 
Avoidance of transfers reversed where creditor had close, but not insider, relationship with debtor.
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Commercial case opionion summary, case decided on June 12,2007, LexisNexis #1007-068

Tardiff v. MBNA Am. Bank (In re Kepley)

Chapter 7 trustee brought an adversary proceeding against a creditor, alleging that a payment by the debtor prior to the bankruptcy filing was a voidable preference under 11 U.S.C. § 547(b)(4)(A). The parties cross-moved for summary judgment.
Ruling: 
Payment to creditor with funds held by debtor and spouse as tenants by the entirety was not avoidable.
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Mann v. GTCR Golder Rauner LLC

Plaintiff, the trustee for a debtor in chapter 7 bankruptcy, moved for summary judgment in her adversary proceeding against defendants, a second consulting company, its owner, and the owner's wife, to avoid the sale of the debtor's assets to the second consulting company as a preferential transfer under 11 U.S.C. § 547.
Ruling: 
Sale of debtor's assets to another company owned by debtor's former CEO was not preferential as debtor was not an insider at time of transfer.
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Jensen v. Eck (In re Steele)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant transferee of payments from a bankruptcy debtor, seeking to set aside the transfers as preferential. The transferee moved to dismiss the proceeding on the ground that the transfers occurred outside the preference period of 11 U.S.C. § 547(b)(4)(B), and the trustee asserted that the period was equitably tolled.
Ruling: 
Close friend of debtor was not an insider so that transfer to the friend more than 90 days prepetition was not preferential.
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Heyer v. Conesus Milk Producers Coop. Assn (In re Clayson)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid an alleged transfer from the debtor as preferential under 11 U.S.C. §§ 547 and 550. The trustee contended that the creditor failed to perfect its security interest in the debtor's cattle, and its receipt of funds from an auction of such cattle constituted a preference.
Ruling: 
Receipt of funds from a cattle auction was deemed not preferential since the security interest in debtor's cattle was deemed perfected prior to preference period.
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