- 11 U.S.C.
Cage v. Wyo-Ben Inc. (In re Ramba Inc.)
Jan
23
2006
Ruling
Payment to an unsecured creditor was an avoidable transfer since the payment was not made according to ordinary business terms but rather was made on invoices older than the industry standard for making payment of 120 days.
Procedural posture
Two months before bankruptcy, a buyer received the debtor's assets free of liens, paid off the debtor's under secured lender, and paid the rest of the consideration to 10 defendant unsecured creditors. The debtor paid an 11th defendant unsecured creditor. The district court entered summary judgment against plaintiff trustee on an 11 U.S.C. § 547(b) preference action. The trustee appealed.
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