In Re Skywalkers, Inc., Dba T-Birds, Debtor. Annie Loo v. Craig D. Martinson, Trustee John Alguire Scott Walker

Annie Loo appeals the Bankruptcy Appellate Panel’s decision affirming the bankruptcy court’s judgment in favor of the Chapter 7 trustee Craig D. Martinson. Martinson brought an adversary proceeding to recover payments made by Skywalkers, Inc. (the debtor corporation) to Annie Loo (the appellant creditor) between 90 days and one year before filing bankruptcy, on an obligation guaranteed by Walker and Alguire (officers of Skywalkers). The Bankruptcy Appellate Panel (BAP) affirmed the bankruptcy court’s decision ruling that the transfers were preferential payments pursuant to 11 U.S.C. § 547 and avoiding them under 11 U.S.C. § 550 . We affirm.

I. BACKGROUND

On February 21, 1989, Skywalkers, Inc., agreed to purchase a liquor license from Annie Loo in exchange for a time payment of $90,000.00 plus interest at ten percent (10%) per annum. The terms provided for initial and monthly payments of $2,282.80 principal and interest and a balloon payment of all unpaid principal and interest on July 15, 1990. Loo retained a lien on the liquor license that was noted on the records of the Montana Department of Revenue Liquor Division and on the license itself. However, no UCC-1 financing…