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Eleventh Circuit Strengthens Creditor's Defense to Preference Claim

A defendant creditor in a preference suit may offset 1) the amount of later “new value” it sold to the Chapter 11 debtor against 2) the debtor's earlier preferential payment to the creditor, the U.S. Court of Appeals for the Eleventh Circuit recently held.

9 minute read October 01, 2018 at 12:07 AM
By
Michael L. Cook
Eleventh Circuit Strengthens Creditor's Defense to Preference Claim

A defendant creditor in a preference suit may offset a) the amount of later “new value” (i.e., additional goods) it sold to the Chapter 11 debtor against b) the debtor's earlier preferential payment to the creditor, the U.S. Court of Appeals for the Eleventh Circuit recently held.

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