Appalachian Oil Co. v. Tennessee Education Lottery Corp. (In Re Appalachian Oil Co.)

MEMORANDUM

MARCIA PHILLIPS PARSONS, Bankruptcy Judge.

This is an action pursuant to 11 U.S.C. §§ 547(b) and 550(a) to avoid and recover certain alleged preferential transfers totaling $526,790.68 made by the debtor Appalachian Oil Company, Inc. (“APPCO”) to Tennessee Education Lottery Corporation (“TEL”). Presently before the court is TEL’s motion for summary judgment based on its contention that the transfers constituted trust funds and therefore were not property of the debtor, a necessary element of § 547(b). APPCO opposes the motion and contends, to the contrary, that it is entitled to…