Case Summary:
In an adversary proceeding to avoid certain transfers as preferential, the Court found that all the elements of a preference had been proven.  However, the Creditor had a compete defense.  First, many of the transfers were made in the ordinary course as between the two parties.  Although the parties’ payment history was sui generis, they established a pattern where the Debtor would pay the Creditor in irregular amounts, by check or wire transfers, whenever it had funds available.  Those payments that fell outside the ordinary course were shielded by the new value defense, in that after the Debtor made the payments, the Creditor delivered at least as much grain on an unsecured basis.

Statute/Rule References:
11 U.S.C. § 547(b) -- Preferences
11 U.S.C. § 547(c)(2) -- Preferences
11 U.S.C. § 547(c)(4) -- Preferences
11 U.S.C. § 547(g) -- Preferences

Key Terms:
New Value
Ordinary Course
Preferences