Where an adversary proceeding has been brought to recover transfers made by the debtor to the defendant during the 90-day period before the filing of the debtor’s bankruptcy case as preferential payments pursuant to 11 U.S.C. §§547(b) and 550, the parties’ cross-motions for summary judgment should be allowed in part and denied in part, as $56,213.70 of the transfers were inconsistent with the ordinary course of business between the debtor and the defendant but the balance were made in the ordinary course of business.
“The plaintiff John O. Desmond (the ‘Trustee’), chapter 7 Trustee of the bankruptcy estate of National Fish and Seafood, Inc. (the ‘Debtor’), seeks summary judgment in his favor [Dkt. No. 51] (the ‘Trustee’s Motion’) with respect to this adversary proceeding to recover transfers made by the Debtor to the defendant Northern Ocean Liquidating Corporation f/k/a Northern Ocean Marine, Inc. (‘Defendant’ or ‘NOLC’) during the ninety-day period before the filing of Debtor’s bankruptcy case as preferential payments pursuant to 11 U.S.C. §§547(b) and 550. …
“… The parties have agreed that §547(c)(4) provides a defense to some of the transfers at issue within the ninety-day lookback period and that only $108,844.56 (the ‘Transfers’) remains in dispute and potentially subject to application of an ordinary course defense under §547(c)(2). As will be discussed below, I conclude that $56,213.70 of the Transfers were inconsistent with the ordinary course of business between Debtor and NOLC and the balance were made in the ordinary course of business. …
“For the reasons discussed above, I will grant NOLC’s cross-motion for summary judgment in part and grant the Trustee’s motion for summary judgment in part. A judgment in favor of the Trustee in the amount of $56,213.70 consistent with this decision will enter.”
In re: National Fish and Seafood, Inc. (Lawyers Weekly No. 04-005-24) (27 pages) (Panos, J.) (Chapter 7 Case No. 19-11824-CJP; AP No. 21-01068-CJP) (April 1, 2024).
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