Average Lateness and Bucketing Tests Confirm the Ordinary Course Defense
A district judge in Brooklyn applied the two most commonly used tests for the ‘ordinary course’ defense to uphold dismissal of preference complaints.
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‘Admin’ Claims for 20-Day Shipments Don’t Offset the New Value Defense, Circuit Says
A shipment received by a debtor within 20 days of filing gives the creditor both an administrative claim and a new value defense to a preference, the Eleventh Circuit says.
Bankruptcy Code
Judge Walrath Describes Due Diligence to Plead After the Amendment to Section 547(b)
The amendment to Section 547(b) does not require a preference complaint to explain why the defendant doesn’t have affirmative defenses, Judge Walrath says.