Bankr. E.D.N.C.: Angell v. Larabee ( In re Tanglewood Farms)- Cure Payments not in the Ordinary Course of Business

Summary: The Trustee sought turnover of funds from the Mary Larabee, the wife of the cousin of the 100% owner of Tanglewood Farms) as prefential transfers under 11 U.S.C. § 547, 550 and 551. (Similar claims against her husband are still pending.) Prior to filing bankruptcy, Tanglewood Farms had “rigorously” made payment on a debt to Mary Larabee, but in late 2009 fell delinquent, but caught up the missed payments in the first five months of 2010. The court found that these cure payments were not in the ordinary course of business and the the exception to avoidance of preferential payments in 11 U.S.C. § 547(c)(2) did not apply. For a copy of the opinion, please see: Angell v. Larabee ( In re Tanglewood Farms)- Cure Payments not in the Ordinary Course of Business