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IN RE MILK PALACE DAIRY, LLC

BAP No. KS-07-060. Bankruptcy No. 03-16743. Adversary No. 05-05821.

385 B.R. 765 (2008)

In re MILK PALACE DAIRY, LLC, a Corporation, Debtor. Milk Palace Dairy LLC, Plaintiff-Appellant, v. L & N Pump, Inc., Defendant-Appellee.

United States Bankruptcy Appellate Panel of the Tenth Circuit.

April 8, 2008.

Attorney(s) appearing for the Case

Submitted on the briefs:*

W. Thomas Gilman and Kathleen L. Harrell-Latham of Redmond & Nazar, LLP, Wichita, KS, for Plaintiff-Appellant.

Timothy J. King of Speth & King, Wichita, KS, for Defendant-Appellee.

Before CLARK, BOHANON, and MICHAEL, Bankruptcy Judges.

OPINION

CLARK, Bankruptcy Judge.

Debtor appeals the bankruptcy court's decision rejecting its preference claim based on applicability of the ordinary course of business defense. We AFFIRM.

I. Background

This appeal presents a straightforward claim of preference. Debtor, Milk Palace Dairy, LLC ("Milk Palace" or "Debtor") seeks recovery of a $10,000 payment that it made, approximately 45 days prior to the filing of its Chapter 11 petition...

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