Steege v. Canon U.S.A., Inc. (In re Calumet Photographic, Inc.)

LaShonda A. Hunt, United States Bankruptcy Judge

At issue before the court is the purely legal question of whether the law of this Circuit still holds that only unpaid new value can be used by a creditor to reduce preference liability under 11 U.S.C. § 547(c)(4)(B). After reviewing the parties' cross-motions for partial summary judgment and the applicable case law, the court concludes the answer to that question is yes.

Background

The parties agree on the salient facts.1 Debtor Calumet Photographic, Inc. ("debtor"), filed for chapter 7 bankruptcy relief on March 12, 2014, and plaintiff Catherine…