Bankr. No.:
04-10175
Adv. No.:
04-1015
Chapter:
11
Date of Decision:
December 1, 2004
Issue:
Whether Plaintiff-Debtor was entitled to summary judgment on its preference action regarding a judgment lien that was taken on a dishonored letter of credit?
Ruling:
Summary judgment was not granted as Defendant raised material question of fact regarding whether Debtor was insolvent when the judgment lien was taken. Court also ruled that Debtor’s assets, for the insolvency test under § 547, would be valued at a going concern value and that the date of the debt was when Debtor dishonored the letter of credit, not when that debt was later reduced to judgment.
Full Bankruptcy Court Decision:
