In Re BFW Liquidation, LLC
United States Court of Appeals for the Eleventh Circuit
899 F.3d 1178 (2018)
- Written by Rose VanHofwegen, JD
Facts
Bruno’s Supermarkets, LLC (Bruno’s) (debtor) sold ice cream made by Blue Bell Creameries, Inc. (Blue Bell). Blue Bell delivered almost daily on credit, and Bruno’s paid the invoices twice weekly. When Bruno’s began experiencing cash-flow problems, it delayed but still made payments to Blue Bell. In the 90 days before filing bankruptcy, Bruno’s paid Blue Bell $563,869, while Blue Bell delivered $435,706 worth of ice cream. After Bruno’s filed for reorganization, the bankruptcy trustee brought an adversary proceeding to recover the $563,869 from Blue Bell. The parties agreed the payments were preferences, but Blue Bell asserted it provided new value to Bruno’s that made the transfers unavoidable. The bankruptcy court gave Blue Bell an offset against its preference liability only to the extent its invoices remained unpaid before Bruno’s filed. Bruno’s had remained relatively current, and the trustee’s expert calculated Bruno’s had paid $438,496 for ice cream delivered during the preference period. The bankruptcy court entered judgment for that amount for the trustee. Blue Bell appealed.
Rule of Law
Issue
Holding and Reasoning (Carnes, J.)
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