IN RE AL COHEN'S RYE BREAD BAKERY, INC.

Bankruptcy No. 94-12525 B, Adversary No. 95-1254 B.

202 B.R. 546 (1996)

In re AL COHEN'S RYE BREAD BAKERY, INC., Debtor. Harold P. BULAN, as Trustee, Plaintiff, v. NIAGARA MOHAWK POWER CORPORATION, Defendant.

United States Bankruptcy Court, W.D. New York.

November 15, 1996.


Attorney(s) appearing for the Case

Goldstein, Navagh, Bulan & Chiari (Harold P. Bulan, of counsel), Buffalo, New York, for Plaintiff.

William C. Grossman, Niagara Mohawk Power Corporation, Buffalo, New York, for Defendant.


CARL L. BUCKI, Bankruptcy Judge.

In New York State, public utilities are required to offer Deferred Payment Agreements to qualified commercial customers who face a termination of service by reason of payment delinquency. The question now at issue is whether such deferred payments satisfy the ordinary course exception to the preference provisions of 11 U.S.C. § 547.

In November 1992, Al Cohen's Rye Bread Bakery, Inc., began to fall behind in payments to...

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