Bankr. L. Rep. P 71,421 in Re Kenitra, Inc. Robert K. Morrow, Inc. v. Agri-Beef Co., Independent Grain Co., and Waldrip Bros.

Plaintiff Robert K. Morrow, Inc., trustee for the debtor, Kenitra, Inc., appeals the district court’s affirmance of the bankruptcy court’s dismissal of adversary proceedings against defendants Agri-Beef Co. and Independent Grain Co., and partial dismissal of an adversary proceeding against Waldrip Bros. We affirm.

I.

More than ninety days before creditors filed an involuntary bankruptcy petition against the debtor, the debtor gave checks to the defendants as payments on existing debts. The banks on which the checks were drawn honored them within ninety days of the date of the filing. The trustee filed adversary proceedings to avoid the payments as preferences under 11 U.S.C. § 547 (b). The proceeding against Waldrip Bros, involved one check given prior to the ninety-day period but honored within it, and one check given and honored within the period.

The bankruptcy court granted summary judgment for Agri-Beef and Independent Grain, and partial summary judgment for Waldrip Bros, on that part of the claim involving the check given prior to the ninety-day period. The district court consolidated the appeals and affirmed. The trustee filed a timely appeal.

II.

A debtor’s payment by…