§ 547(c)(4)

TI Acquisition LLC v. Southern Polymer Inc. (In re TI Acquisition LLC)

Plaintiff chapter 11 debtor filed an adversary proceeding against defendant creditor, seeking a determination that certain transfers were avoidable under 11 U.S.C.S. § 547(b). The creditor asserted a "new value" defense under § 547(c)(4), and the debtor moved for partial summary judgment on its claim that the creditor was not entitled to claim the new value defense to the extent a claim it filed under 11 U.S.C.S. § 503(b)(9) was approved.
Ruling: 
Creditor who held allowed proof of claim could not also assert subsequent new value defense to avoidance proceeding.
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Commercial case opionion summary, case decided on April 28,2010, LexisNexis #0710-124

In re Commissary Operations Inc.

Plaintiff chapter 11 debtor filed motions for declaratory judgment regarding the use of 11 U.S.C.S. § 503(b)(9) administrative invoices in an 11 U.S.C.S. § 547(c)(4) subsequent new value defense to a preference claim. Defendant creditors objected and filed motions for partial summary judgment on the same issue.
Ruling: 
Prepetition administrative expense invoices could be used in subsequent new value defense to avoidance.
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Commercial case opionion summary, case decided on January 06,2010, LexisNexis #0210-090

Miller v. A&M Oil Co. (In re Smith Mining & Material LLC)

A debtor filed for relief under chapter 11 of the Bankruptcy Code. Plaintiff, a chapter 11 trustee, filed an action against defendant company, alleging that transfers made to the company were preferential and could be avoided and recovered under 11 U.S.C.S. §§§ 544, 547, 549, and 550. The court issued findings of fact and conclusions of law.
Ruling: 
Pre- and postpetition transfers by debtor to creditor fuel supplier avoided to extent not covered by new value defense.
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Commercial case opionion summary, case decided on May 19,2009, LexisNexis #0709-091

Schnittjer v. Pickens (In re Pickens)

Defendant creditor sought reconsideration of a judgment in favor of plaintiff trustee for avoidable preferential payments by the debtors. The creditor sought to reduce the judgment pursuant to 11 U.S.C.S. § 547(c)(4) by the amount of subsequent new value she allegedly granted to the debtors on her credit card.
Ruling: 
New value received from use of charge card could be set off against preferential payments.
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Consumer case opionion summary, case decided on February 05,2008, LexisNexis #0308009

Mukamal v. Libra Secs. LLC (In re Far & Wide Corp.)

Plaintiff the liquidating trustee for the debtors filed an action against defendant investment banking firm under 11 U.S.C. §§ 547 and 550 to recover a prepetition transfer made by the debtors to the firm of $25,000. The firm asserted various defenses, including the new value defense under 11 U.S.C. § 547(c)(4). The firmed moved for summary judgment on the new value offense and the trustee filed a motion to strike the affirmative defenses.
Ruling: 
Payment to firm for prepetition financial services qualified for new value defense.
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McKloskey v. Schabel (In re Schabel)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditors, the parents of one of the debtors, seeking to avoid an alleged transfer from the debtors as preferential. The parties filed cross-motions for summary judgment.
Ruling: 
Court granted summary judgment to the creditors, debtor's parents, by finding that they had asserted the new value defense to an otherwise preferential transfer.
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