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October 06, 2022, US Bankruptcy Court for Eastern District of Kentucky – Hemp Kentucky Growers, LLC, (“Defendant” or “HKG”) moves the Kentucky Bankruptcy Court for summary judgment against the adversary complaint filed by Oxford Restructuring Advisors, LLC (“Plaintiff”).
Defendant HKG alleges that the alleged preferential transfers are allegedly insulated under the “ordinary course of business” defense of 11 U.S.C. §547(c)(2). HKG claims that these transfers allegedly fit an unbroken payment history. The timing and amount of payments were allegedly as agreed between OGGUSA, Inc. (“Debtor” ) and HKG, with the Debtor allegedly paying identical monthly payments to HKG within a few days of the end of each month. HKG claims that there was allegedly no variance in terms of dollar amounts, method of payment, or nature of the debts.
HKG further claims that it received three demand letters from the Debtor-in-Possession and the Plaintiff during 2020 and 2021. Defendant allegedly gave prompt responses to each of these letters with a detailed discussion of its ordinary course of business defense. However, the affidavit and documents attached with the Plaintiff’s complaint allegedly demonstrate that the Plaintiff and the Debtor-in-Possession allegedly never read or considered HKG’s response letters. Defendant HKG contends that Plaintiff allegedly failed to perform the due diligence required under §547(b) of the Bankruptcy Code. HKG pleads entitlement to a summary judgment in its favor and against the Plaintiff on the ground of ordinary course of business defense.
Oxford Restructuring Advisors, LLC v. Hemp Kentucky, LLC (In re OGGUSA, Inc.), AP No. 22-05021, US Bankruptcy Court for Eastern District of Kentucky
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