Irving Trust Co. v. Commercial Factors Corp.

COXE, District Judge.

This is a suit by the bankruptcy trustee of Nathan & Cohen Company, Inc., to set aside preferential transfers alleged to have been made to the defendant. The bankrupt was an old and favorably regarded converting house in New York City, and had been for a number of years prior to the filing of the bankruptcy petition on April 20, 1931, factored by the defendant, and its predecessor, Peierls, Buhler & Co., Ine., under a factoring agreement, dated August 16, 1926. This agreement provided, not only for advances ag'ainst merchandise, but also for the purchase by the defendant…