{"id":332,"date":"2024-04-26T17:14:55","date_gmt":"2024-04-26T17:14:55","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/bankruptcy-preferential-payments-ordinary-course-of-business\/"},"modified":"2024-04-28T10:10:07","modified_gmt":"2024-04-28T10:10:07","slug":"bankruptcy-preferential-payments-ordinary-course-of-business","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/bankruptcy-preferential-payments-ordinary-course-of-business\/","title":{"rendered":"Bankruptcy \u2013 Preferential payments \u2013 Ordinary course of business"},"content":{"rendered":"\n
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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\u2019s bankruptcy case as preferential payments pursuant to 11 U.S.C. \u00a7\u00a7547(b) and 550, the parties\u2019 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.\n<\/p>\n

\u201cThe plaintiff John O. Desmond (the \u2018Trustee\u2019), chapter 7 Trustee of the bankruptcy estate of National Fish and Seafood, Inc. (the \u2018Debtor\u2019), seeks summary judgment in his favor [Dkt. No. 51] (the \u2018Trustee\u2019s Motion\u2019) 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. (\u2018Defendant\u2019 or \u2018NOLC\u2019) during the ninety-day period before the filing of Debtor\u2019s bankruptcy case as preferential payments pursuant to 11 U.S.C. \u00a7\u00a7547(b) and 550. \u2026\n<\/p>\n

\u201c\u2026 The parties have agreed that \u00a7547(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 \u2018Transfers\u2019) remains in dispute and potentially subject to application of an ordinary course defense under \u00a7547(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. \u2026<\/p>\n

\u201cFor the reasons discussed above, I will grant NOLC\u2019s cross-motion for summary judgment in part and grant the Trustee\u2019s 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.\u201d\n<\/p>\n

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).<\/i>\n<\/p>\n

Click here to read the full text of the opinion.<\/p>\n