• Whether the Goods and Invoices Comprising Pending §503(b)(9) Claims May be Included In a §547(c)(4) Subsequent New Value Defense to a Preference Action
  • November 22, 2010
  • Law Firm: Burr Forman LLP - Birmingham Office
  • The U.S. Bankruptcy Court for the Middle District of Tennessee, in a question of first impression, held that creditors with a pending §503(b)(9) administrative priority claim for goods delivered to the debtor within 20 days prior to the bankruptcy filing could still count the value of those goods in a §547(c)(4) subsequent new value defense to a preference action. Commissary Operations, Inc. v. Dot Foods, Inc. (In re Commissary Operations, Inc.), 421 B.R. 873, 879 (Bankr. M.D. Tenn. 2010) ("Commissary Operations").