Howard v. Burlington Northern & Santa Fe Railway Co. (In re Bangor & Aroostook Railroad)

MEMORANDUM OF DECISION

JAMES B. HAINES, JR., Bankruptcy Judge.

In these consolidated adversary proceedings, the trustee of Bangor and Aroos-took Railroad Company (“BAR”)1 asserts that the defendants, other railroads who were entitled to payment from BAR for interline freight charges at all pertinent times, “improved their position” vis a vis BAR during the ninety days before bankruptcy (ie., they were owed less on the petition date than they were on the ninetieth day preceding the petition). He asserts -that defendants were paid their freight charges via monthly “setoffs” and that, under §…