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I Scream, You Scream, We All Scream at Preference Claims

Posted on: October 2, 2018

IN BRIEF:

  • Must new value “remain unpaid” for a creditor to defeat a trustee’s avoidance action?
  • The Eleventh Circuit joined other circuits in concluding that new value need not remain unpaid.
  • The holding increases protection for short-term creditors that extend credit to distressed businesses.

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