Tri-Co. v. Star Building Systems (In Re Tri-Co.)

OPINION

JAMES F. QUEENAN, Jr., Bankruptcy Judge.

Tri-Co., Inc. (the “Debtor”), as debtor in possession, has brought this suit under section 549(a) of the Bankruptcy Code to recover an unauthorized (and involuntary) postpetition transfer of property of the bankruptcy estate 1 . The case raises these questions: When a party owing a prepetition debt to a bankruptcy estate makes a postpetition payment to a creditor of the debtor instead of the bankruptcy estate, does this bring about a transfer of property of the estate? Does it make any difference that the paying party also owed an obligation to…