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IN RE NEW YORK CITY SHOES, INC.

No. 89-1051.

880 F.2d 679 (1989)

In re NEW YORK CITY SHOES, INC., Debtor. NEW YORK CITY SHOES, INC., Appellant, v. BENTLEY INTERNATIONAL, INC., Appellee.

United States Court of Appeals, Third Circuit.

Decided July 12, 1989.

Attorney(s) appearing for the Case

Pauline K. Morgan (argued), Douglas J. Smillie, Clark, Ladner, Fortenbaugh & Young, Philadelphia, Pa., for appellant.

Joseph I. Mezrahi (argued), New York City, for appellee.

Before BECKER, STAPLETON and ROSENN, Circuit Judges.

OPINION OF THE COURT

BECKER, Circuit Judge.

The bankruptcy code allows the debtor's trustee to avoid certain preferential transfers made by the debtor to a creditor within the 90-day period before the debtor filed its petition in bankruptcy. See 11 U.S.C. § 547(b) (1982 & Supp. V 1987). However, 11 U.S.C. § 547(c)(4) (1982) allows a creditor to retain an otherwise voidable preference if the creditor gave the debtor new value after the...

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