Carrier Corp. v. Buckley

CUDAHY, Circuit Judge:

Section 547(b) of the Bankruptcy Code authorizes a trustee to avoid certain property transfers made by a debtor within 90 days before bankruptcy. The Code makes an exception, however, for transfers made in the ordinary course of business.

In the present case, the bankruptcy trustee for Globe Holding and its subsidiary Globe Manufacturing (which we will refer to collectively as Globe), brought an action to recover payments made by Globe to Carrier Corporation, one of Globe’s unsecured creditors, just prior to the filing of Globe’s bankruptcy petition. Carrier argues both…