United Rentals Loses Preferential Transfer Appeal

Law360, New York (January 25, 2010, 6:11 PM EST) -- In a dispute over preferential transfers, a federal appeals court has upheld a ruling requiring United Rentals Inc. to return payments it received from Partitions Plus of Wilmington Inc. before its 2005 bankruptcy filing.

A three-judge panel of the U.S. Court of Appeals for the Fourth Circuit rejected United's argument that the transfer was a “contemporaneous exchange for new value,” which, under 11 U.S.C.A. § 547 (c)(1), is an exception that would allow United to keep the roughly $67,000 at issue.

The court also rejected United's...
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