Daily News: July 1, 2013

U.S. Bank Urges Judge to Overrule Dewey Preference Objection

U.S. Bank filed a response to two objections filed by Dewey & LeBoeuf with regard to certain equipment lessor claims that encompass a present value objection and a preference objection, the former acknowledged by U.S. Bank as being valid; however, the bank requested that the latter claim be overruled and denied in its entirety by the bankruptcy court.

By way of background, Dewey filed for Chapter 11 on May 28, 2012. On September 5, 2012, U.S. Bank, as successor to U.S. Bancorp Oliver Allen Technology Leasing, filed a proof of claim for amounts due under a lease agreement of $8.3 million. Under the present value objection, the bank has agreed to reduce the amount of the claim to $7.9 million.

Under the preference objection, U.S. Bank said its proof of claim should not be disallowed due to its alleged receipt of a preferential transfer, i.e., the bank received only one payment from the debtor during the preference period. U.S. Bank said the debtor is not entitled to avoid such transfer because it has valid “new value” and “ordinary course of business” defenses.

A hearing date of July 11, 2013 has been set to hear the case.

To read the bankruptcy court document, click here.

Previously on abfjournal: Federal Judge Approves Dewey Mismanagement Settlement, May 31, 2013