United States Third Circuit

In bankruptcy proceedings in which the debtor filed a complaint against its creditor to avoid and recover preferential transfers from the creditor, a judgment rejecting defendant's defenses and motion for an adverse inference is vacated in part and remanded where the bankruptcy court erred in holding that the fact that the parties had a credit relationship precluded, as a matter of law, a finding that the debtor intended the transfers to be part of a contemporaneous exchange for new value. Denial of the debtor's request for prejudgment interest is also vacated and remanded where the district court failed to explain its reasons for the denial.

Appellate Information

• Decided 06/07/2007
• Published 06/07/2007

Judges

• Before:  RENDELL and CHAGARES, Circuit Judges.

Court

• United States Third Circuit

Counsel

• For Appellees:
  
• Kevin J. Mangan, Monzack & Monaco, Wilmington, DE, and Michael S. McElwee [Argued], Barnum, Riddering, Schmidt & Hewlett, Grand Rapids, MI, for Appellant/Cross Appellee Universal Forest Products, Inc.; and Hechinger Liquidation Trust, as successor in interest to Hechinger Investment Company of Delaware Inc., et al., Debtors in Possession., Joseph L. Steinfeld, Jr. [Argued], Karen M. Scheibe, A.S.K. Financial, Eagan, MN, for Appellee/Cross Appellant Hechinger Investment Company of Delaware, Inc.