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IN RE MONTGOMERY WARD, LLC

Bankruptcy No. 00-4667 KG, Adversary No. 02-9282 RTL.

348 B.R. 662 (2006)

In re MONTGOMERY WARD, LLC, et al., Debtors. Montgomery Ward, LLC, et al., Plaintiffs, v. OTC International, Ltd., Defendant.

United States Bankruptcy Court, D. Delaware.

September 12, 2006.

Attorney(s) appearing for the Case

Morris, Nichols, Arsht & Tunnell, Donna L. Culver, Esq., Derek C. Abbott, Esq., Daniel B. Butz, Esq., Co-Counsel for Plaintiff.

A.S.K. Financial, LLP, Joseph L. Steinfeld, Jr., Esq., Karen M. Scheibe, Esq., Co-Counsel for Plaintiff.

Silverberg Stonehill Goldsmith & Haber, P.C., Kenneth R. Schachter, Esq., Mitchell L. Kaplan, Esq., Co-Counsel for Defendant.

The Bayard Firm, Kathryn D. Sallie, Esq., Ashley B. Stitzer, Esq., Co-Counsel for Defendant.

OPINION

RAYMOND T. LYONS, Bankruptcy Judge.1

Plaintiff sues to avoid preferential payments made within 90 days prior to the filing of bankruptcy on December 28, 2000. The Defendant maintains that all payments were made in the ordinary course and, therefore, not avoidable under 11 U.S.C. § 547(c)(2). Plaintiff responds that a reduction in payment terms from 60 days to 30 days just prior to the preference period prevents...

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