Pirinate Consulting Grp., LLC v. Styron LLC (In re Newpage Corp., et al.), Adv. Proc. No. 13-52443 (KG), 2014 WL 4948421 (Bankr. D.
Del. Oct. 1, 2014)
In the wake of the Third Circuit’s Friedman’s opinion, the Court in this decision addressed whether a preference defendant who draws on a letter of credit post-petition may still credit the relevant amounts as subsequent new value under section 547(c)(4) of the Bankruptcy Code. In denying cross motions for summary judgment on the issue, Judge Kevin Gross illustrated that Friedman’s does not provide a bright line rule in all cases, and that a court may still examine the effect of a post-petition payment on the debtor’s estate before determining whether new value related to the payment may be credited against preference liability under the statute. Read More ›
Tags: Avoidance Actions, Preferences