Orexigen Therapeutics, Incorporated (debtor) manufactured a drug used to treat obesity. In June 2016, Orexigen entered into a distribution agreement for the drug with McKesson Corporation (creditor). The agreement was governed by California law. Among other things, the agreement gave McKesson the right to set off any debts owed by McKesson to Orexigen and its affiliates against any debts owed by Orexigen to McKesson and its affiliates. In July 2016, Orexigen entered into a services agreement with McKesson Patient Relationship Solutions (MPRS) (creditor), McKesson’s wholly owned subsidiary. That agreement provided, among other things, that MPRS would fund discounts on Orexigen’s drug and receive reimbursement from Orexigen. Orexigen filed a chapter 11 bankruptcy petition in March 2018. At that time, McKesson owed Orexigen $6,932,816.40 under the distribution agreement, and Orexigen owed MPRS $9,100,000 under the services agreement. McKesson and MPRS filed a motion seeking the court’s approval to offset McKesson’s debt to Orexigen against Orexigen’s debt to MPRS.