IN RE MAXWELL NEWSPAPERS, INC.

Bankruptcy No. 91 B 15531 (TLB). Adv. P. No. 93-9937A.

192 B.R. 633 (1996)

In re MAXWELL NEWSPAPERS, INC. d/b/a Daily News, Debtor. The OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF MAXWELL NEWSPAPERS, INC. d/b/a Daily News, Plaintiff, v. The TRAVELERS INDEMNITY COMPANY, The Travelers Insurance Company, The Travelers Indemnity Company of Illinois, and The Phoenix Insurance Company, Defendants.

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

February 26, 1996.


Attorney(s) appearing for the Case

Winston & Strawn (Howard Seife, Augustine H. Kim, of counsel), New York City, for Plaintiff.

Phillips Nizer Benjamin Krim & Ballon L.L.P. (Eric G. Waxman, III, of counsel), Garden City, NY, Ralph Chin, Hartford, CT, for Defendants.


DECISION ON CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT

TINA L. BROZMAN, Bankruptcy Judge.

Two questions are presented on these cross-motions for partial summary judgment regarding the "subsequent new value" defense to an otherwise avoidable transfer: (i) does the continued provision of insurance coverage constitute new value and (ii) if it does, is the defense unavailable nonetheless because the cost of that coverage was subsequently paid by a concededly...

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