It is relatively rare when a Circuit Court issues an opinion on the preference defenses under section 547(c) of the Bankruptcy Code. It is even more unusual when a decision examines the fact-focused “ordinary course” defense under section 547(c)(2). The ordinary course defense shields payments determined to have been made in the “ordinary course of … Continue Reading
The Bankruptcy Code is generally a debtor-friendly scheme that negatively impacts the rights of creditors. Given that fact, creditors are inclined to avoid troubled business if possible. The Code, however, provides a handful of incentives for creditors to continue doing business with a distressed company, even as it slides into bankruptcy. Among these incentives are the … Continue Reading
