BANKRUPTCY - PREFERENTIAL TRANSFERS - THE CHANDLER ACT AND ANTECEDENT DEBTS

Authors

William C. Wetherbee, Jr., University of Michigan Law School

Abstract

A canning company, in return for cans and supplies furnished it, gave its brokers the exclusive right to sell its canned goods and deduct the amount owing to them before turning over the proceeds. More than a year before the petition in bankruptcy, in compliance with a request for security from a seed company to which it was indebted, it made assignments of its right to these net proceeds to the seed company. The latter claims these proceeds as a secured creditor although they did not come into existence until after the petition in bankruptcy. Upon the referee's refusal to allow this as a secured claim on the ground that it constituted a preferential transfer, the seed company filed this petition for review. Held, referred back to referee for further determination of facts, and if present consideration was furnished at the time of the assignments there could be no preferential transfer. In re Talbot Canning Corp., (D. C. Md. 1940) 35 F. Supp. 680.

Recommended Citation

William C. Wetherbee, Jr., BANKRUPTCY - PREFERENTIAL TRANSFERS - THE CHANDLER ACT AND ANTECEDENT DEBTS, 40 Mich. L. Rev. 105 (1941).
Available at: https://repository.law.umich.edu/mlr/vol40/iss1/10