June 18, 2017, Mississippi – The defendant, our client, in this case, provided professional advisory services to the debtor pursuant to an engagement agreement. The debtor paid our client during the preference period. The plaintiff sought to recover the payments as preferential transfers, fraudulent conveyance transfers, and post-petition transfers. We argued that the debtor’s obligation to pay pursuant to the engagement agreement was a result of arm’s length transaction entered into by our client and the debtor and therefore, our client was paid in the ordinary course of business.
As to the fraudulent conveyance transfer claim, we argued that the debtor received equivalent value in the form of professional services extended by the defendant to the debtor. Further, as the payments were paid before the bankruptcy filing, the post-petition transfer claim failed. Based on our strong arguments in the position statement, the plaintiff dismissed the case for no payment.