Quimbee logo
DMCA.com Protection Status
From our private database of 16,400+ case briefs...

In re National Gas Distributors, L.L.C.

United States Bankruptcy Court for the Eastern District of North Carolina
346 B.R. 394 (2006)


National Gas Distributors, LLC (NGD) was a purchaser and distributor of natural gas and other energy commodities. NGD financed its operations through Branch Banking and Trust Company (BB&T), using a line of credit, a working capital loan, and letters of credit. Paul Lawing, the owner of NGD, and his wife, Ann Lawing, personally guaranteed the loans. The financing was secured by assets owned by Ann. One of the loans was a line of credit in the principal amount of $1 million, which was entered into on March 31, 2003. The line of credit obligation was first set to mature on November 5, 2003, but was extended to December 23, 2005. NGD paid the outstanding balance of $755,329.80 on the line of credit on December 15, 2005. The working capital loan had a principal amount of $2.5 million and was entered into on September 27, 2004. The working capital obligation was originally set to mature on March 27, 2005, but was also extended to December 23, 2005. NGD paid the balance of $2,508,186.35 on the working capital loan on December 19, 2005. NGD petitioned for Chapter 11 bankruptcy on January 20, 2006. The bankruptcy trustee filed an action in bankruptcy court to recover NGD's two payments as preferential transfers under § 547 of the Bankruptcy Code (BC). The bankruptcy trustee moved for summary judgment. BB&T filed an affidavit that provided that paying the balance of an obligation within a few weeks of the maturity date is a typical and customary practice in the banking industry.

Rule of Law


Holding and Reasoning (Small, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 375,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 16,400 briefs, keyed to 223 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial