Monthly Archives: November 2015

Chief Judge Stark (D. Del.) Issues a Pair of Opinions Addressing New Value, Ordinary Course of Business, and Earmarking Defenses (Part I)

By Evan T. Miller, Esq.

The U.S. District Court for the District Court recently issued two opinions addressing lower court appeals which turned on the statutory defenses provided for in 11 U.S.C. §§ 547(c)(2) and (4), in addition to the availability of the “earmarking doctrine”. Continue reading

Judge Sontchi Rules Preferential Transactions Were Made in the Ordinary Course of Business Notwithstanding Earlier Ruling Adverse to Defendant at Summary Judgment Stage

By Evan T. Miller, Esq.

On July 16, 2015, Judge Christopher S. Sontchi, of the United States Bankruptcy Court for the District of Delaware, issued an opinion in Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.), No. 10-52667 (CSS), finding that Revchem Composites, Inc. (“Defendant”) established a complete defense to a preference action, utilizing the subjective “ordinary course of business” transactions exception in Bankruptcy Code section 547(c)(2) (the “OCOB Defense”). Continue reading