There currently exists a split as to whether goods delivered within 20 days of a filing that qualify as §503(b)(9) administrative expenses (“20-day claims” or “20-day goods”) may also serve as new value to defend a preference under § 547(c)(4). On Jan. 6, 2010, Hon.

Because there can be at least a two-year lag between a bankruptcy filing and a preference demand made pursuant to 11 U.S.C. §547, a consistent, proactive approach to gathering defense data is critical.

Although a claim involving only goods sold to the debtor qualifies as an administrative expense under § 503(b)(9)[1] of the Bankruptcy Code, courts are split as to whether, and to what extent, this section covers so-called “hybrid” claims—those involving both goods and services transactions.

In the wake of the global credit crisis, the U.S. housing market plummeted with values declining as much as 50 percent and home foreclosures at record highs. With lower asset values and frozen credit markets, it became difficult, if not impossible, for U.S. homebuilders to continue business operations. Many U.S.