IN RE: BEAULIEU GROUP, LLC AND BEAULIEU TRUCKING, LLC, Debtors. PMCM 2, LLC, as the Liquidating Trustee for the Beaulieu Liquidating Trust, Plaintiff, v. FABRIC SOURCES, INC. and FABRIC SOURCES INTERNATIONAL LLC, Defendants., 616 B.R. 857

Summary

HOLDINGS: [1]-There was no temporal requirement in 11 U.S.C.S. § 547(c)(4) for a debtor's transfer on account of new value and thus, where a creditor had a claim under 11 U.S.C.S. § 503(b)(9) and a defense under 11 U.S.C.S. § 547(c)(4) and where the debtor had established reserves to pay administrative claims in full, then that reserve constituted an "otherwise unavoidable transfer" by the debtor, and the new value represented by the 11 U.S.C.S. § 503(b)(9) claim could not be used to offset the creditor's preference liability.