Official Unsecured Creditors Committee of Sufolla, Inc. ex rel. Estate of Sufolla, Inc. v. U.S. National Bank

FARRIS, Circuit Judge:

U.S. National Bank of Oregon appeals the district court’s judgment in favor of the Official Unsecured Creditors Committee of Su-folla, Inc., in the Committee’s action to recover a transfer made by the Chapter 11 debtor to the Bank. The district court found the transfer to be preferential and allowed the Creditors Committee to recover against the Bank pursuant to 11 U.S.C. § 550(a)(1). After examining for the first time the problem of the “trilateral preference,” we affirm.

I

On December 11,1985, Sufolla entered into a loan and security agreement with the Bank whereby the…