In the Matter of Chg International, Inc., Debtor. Chg International, Inc. v. Barclays Bank

Debtor-appellant CHG International, Inc. (“CHG”) appeals from the district court’s grant of summary judgment to creditor-ap-pellee Barclays Bank PLC (“Barclays”) on the issue of whether CHG could recover as preferential transfers two interest payments it made, to Barclays on undersecured loans within 90 days of the filing of CHG’s Chapter 11 bankruptcy petition. CHG argues that the district court (1) should have found that Congress did not intend the “ordinary course of business” exception in 11 U.S.C. § 547 (c) to except payments on long-term debt from avoidance as preferential transfers under 11 U.S.C. § 547 (b); (2) erred in finding that under Washington law the debt accrued when interest payments were due and not when the loan was signed; and (3) erred in concluding that Barclays had met its burden under Fed.R. Civ.P. 56(c) and proved all the elements of its affirmative defense under 11 U.S.C. § 547 (c)(2), thereby entitling it to summary judgment.

The district court had jurisdiction pursuant to 28 U.S.C. § 158 (a). We have jurisdiction over this timely appeal pursuant to 28 U.S.C. § 158 (d). We reverse and remand.

I.

Barclays is a British bank doing business in Seattle,…