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IN RE SACRED HEART HOSP. OF NORRISTOWN

Bankruptcy No. 94-13275DAS. Adversary No. 96-0518DAS.

200 B.R. 114 (1996)

In re SACRED HEART HOSPITAL OF NORRISTOWN d/b/a Sacred Heart Hospital and Rehabilitation Center, Debtor. SACRED HEART HOSPITAL OF NORRISTOWN, Plaintiff, v. E.B. O'REILLY SERVICING CORP., Defendant.

United States Bankruptcy Court, E.D. Pennsylvania.

September 5, 1996.

Attorney(s) appearing for the Case

Matthew Strickler and Vincent J. Marriott, Philadelphia, PA, for Debtor.

John A. Kane, Thomas Blazusiak, Senior Assistant Counsel, Robert Slavkin, Assistant Counsel, Sallie A. Rodgers, Assistant Counsel, Leslie S. Oakes, Assistant Counsel, Commonwealth of Pennsylvania, Department of Public Welfare, Harrisburg, PA, for Defendant.

Neal D. Colton, Cozen & O'Connor, Philadelphia, for Creditors' Committee.

Robert Lapowsky, Wayne, PA, for AllMed Financial Corp.

John J. Koresko, V, Koresko & Noonan, Norristown, PA, for certain former employees of Debtor.

Claudia Z. Springer, Duane, Morris & Heckscher, Philadelphia, PA, for Municipal Bonds Investors Insurance Co.

J. Gregg Miller, Pepper, Hamilton & Scheetz, Philadelphia, PA, for Midlantic Bank.

Frederic Baker, Asst. U.S. Trustee, Philadelphia, PA.

OPINION

DAVID A. SCHOLL, Chief Judge.

A. INTRODUCTION

The parties have properly confined the remaining issue in this proceeding to whether, in establishing a defense to an action to recover a preferential transfer under 11 U.S.C. § 547(c)(2), the defendant-creditor need prove that the payments were made "according to ordinary business terms" within the creditor's entire industry, or merely the creditor's dealings with parties in...

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