Rovzar v. Diamond International (In Re Saco Local Development Corp.)

MEMORANDUM DECISION

FREDERICK A. JOHNSON, Bankruptcy Judge.

The chapter 7 trustee seeks to recover as avoidable preferences two payments by the debtor 1 to Diamond International. Diamond asserts that the payments it received from the debtor are insulated from recovery by the trustee by 11 U.S.C. § 547(c)(2).

On March 26, 1981, the debtor filed for relief under chapter 11 of the Code and an order for relief was entered. On May 20, 1981, the ease was converted to chapter 7 and the plaintiff was appointed and qualified as trustee.

The parties stipulated the facts. From November 2, 1980 to November…