Gordon v. Sturm (In Re M2Direct, Inc.)

ORDER

JOYCE BIHARY, Bankruptcy Judge.

This preference action is before the Court on motions to dismiss filed by four of the defendants. These defendants argue that the amendments to 11 U.S.C. § 550 in the Bankruptcy Reform Act of 1994 prevent a trustee from asserting a claim against an insider guarantor to recover preferential payments made by the debtor to a non-insider lender between 90 days and one year before bankruptcy, even though the payments to the lender benefit-fed the insider guarantor. Defendants’ arguments are not persuasive, and the Court concludes that § 550(c) of the Bankruptcy…