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Hutson v. United States Dept of the Army (In re Natural Gas Distribs. Inc.)

Hutson v. United States Dept of the Army (In re Natural Gas Distribs. Inc.)

Ruling
Transfers to Army by debtor natural gas distributor, except for spot purchases, were made pursuant to "swap agreements" and not subject to avoidance.
Procedural posture

Plaintiff chapter 11 trustee filed an adversary proceeding against defendant United States of America, Department of the Army, seeking a determination that contracts which a chapter 11 debtor, a natural gas distributor, concluded with the Army were fraudulent transfers and preferential transfers that could be avoided under 11 U.S.C.S. §§ 548(a)(1)(A) and (B), 547(b), and 550(a)(1). The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on August 25, 2009 , LexisNexis #1209-130