McKittrick v. Gavilon, LLC (In re Cascade Grain Products, LLC)

MEMORANDUM OPINION

ELIZABETH PERRIS, Bankruptcy Judge.

Plaintiff, the trustee in this Chapter 71 bankruptcy ease, filed this complaint to recover as preferential transfers $19,885,728.12 that debtor Cascade Grain Products, LLC (“debtor”), paid to defendants 2 within 90 days before bankruptcy. Defendants move for summary judgment, arguing that all transfers were settlement payments on account of forward contracts *572and therefore not subject to recovery as preferences under § 546(e).3

FACTS

Before it filed bankruptcy, debtor, an ethanol producer, entered into a number of contracts with defendants for…