To establish a preference, a trustee has the burden of showing that source of any transfers from a debtor to creditors was not the proceeds of the creditor’s collateral.
The Court held that the alleged transfers were not preferential because they were made from the proceeds of creditor’s collateral.
Full title: Garner v. Knoll, Inc. (In re Tusa-Expo Holdings, Inc.), 811 F.3d 786, 62 Bankr. Ct. Dec. 24, 88 U.C.C. Rep. Serv. 2d 990 (5th Cir. 2016)
Court: UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT
Date published: Jan 28, 2016