Miller v. JNJ Logistics LLC (In re Proliance International, Inc.)

Chapter 7

OPINION1

Sontchi, J.

INTRODUCTION

The Trustee seeks to recover preferential transfers from Defendant. In *428response, Defendant seeks summary judgment asserting that its preference exposure should be reduced by subsequent new value it provided to the Debtors; to which the Trustee filed his own motion for partial summary judgment contesting, in part, Defendant’s new value defense.

The question before the Court is whether an (alleged) preferential transfer may be reduced by subsequent new value regardless of whether it was “paid” or “unpaid” prior to the Petition Date,2 or whether the defense…