Rovzar v. Southern Maine Metal, Inc. (In Re Saco Local Development Corp.)

MEMORANDUM DECISION

FREDERICK A. JOHNSON, Bankruptcy Judge.

The trustee seeks to recover, as an avoidable preference under section 547(b) of the Bankruptcy Code, a payment received by Southern Maine Metal, Inc., from the debt- or, the Saco Tanning Division of Kirstein Leather Company. 11 U.S.C.A. § 547(b) (1979). Southern Maine Metal argues that the challenged transfer is protected from avoidance by section 547(c)(2). 11 U.S.C.A. § 547(c)(2) (1979). The court concludes that the trustee successfully established all the elements of section 547(b) and that Southern Maine Metal failed to establish…