Under the new value defense, the preference defendant “has the burden of establishing that new value was extended, which remains unsecured and unpaid after the preferential transfer.” Matter of Prescott, 805 F.2d 719, 731 (7th Cir. 1986). Additionally, the Defendant did not present any evidence as to collection practices of Precor or any other treadmill manufacturer. Stallings did not discuss with any Precor dealers the collection practices of Precor and, therefore, schwinn beach cruiser has no knowledge of its collection practices. Nor did Stallings ever have discussions about Precor’s collection practices with any representative of Precor. Contrary to the Committee’s argument, the Defendant did establish that True Fitness advanced a substantial amount of new value to Schwinn on an unsecured basis after it received the preference payments. The evidence further reflects that True Fitness was not paid by the Debtors for the new value advanced.
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As with the award of prejudgment interest itself, the rate of interest is likewise within the court’s sound discretion. Energy Co-op, 130 B.R. At 792 (citations omitted). Some bankruptcy courts have concluded that the coupon yield rate set forth in 28 U.S.C. § 1961 is appropriate. In re Helen Gallagher Enterprises, Inc., 126 B.R. 997, 1005 (Bankr.C.D.Ill. 1991).
That was a reasonable conclusion on their part given the frequency and urgency of the calls. Thus, the collection calls resulted in the Defendant receiving the transfers instead of other creditors of the Debtors. In this regard alone, Defendant has therefore failed to meet its burden under § 547(c)(2)(B). Contrary to Defendant’s contention, the post-bankruptcy substantive consolidation of the Debtors’ several bankruptcy estates does not support a calculation on a consolidated basis of the Defendant’s new value defense to pre-bankruptcy transactions. As found above, however, Defendant did establish at trial that the alleged new value shipments were actually received by the Debtor or its dealers, and that the new value shipments remained unpaid as of the Petition Date.
While a party must prevail on the position it took in the previous litigation, it is not essential that the party received a benefit from its earlier position. See discussion in In re Hutchins, supra, and cases cited there. Chaitman v. Paisano Auto. Liquids, Inc. (In re Almarc Mfg., Inc.), 62 B.R. 684, 686 (Bankr.N.D.Ill. 1986). If those three elements are satisfied, the creditor may set off the amounts of the post-preference unsecured credit which remains unpaid as of the petition date against the amounts which the creditor is required to return to the trustee on account of the preferential transfer.
501, 516 (Bankr.E.D.Tenn. 1993); Clark v. Frank B. Hall Co. of Colo. (In re Sharoff Food Service, Inc.), 179 B.R. 669, 677 (Bankr.D.Colo. 1995). The ruling in Brandt accords with the decision in Rafoth v. Bailey (In re Baker Getty Fin. Services, Inc.), 88 B.R.
Thus, Defendant established under § 547(c)(4) a subsequent new value defense to the preferential transfers. Mr. Larry Stallings joined the Defendant in 1992, and the Defendant’s finance, sales, manufacturing, and accounting departments all reported to him in his capacity as Defendant’s President and Chief Operating Officer. Stallings Tr., p. 4 (line 18); p. 5 (line 24)-p. schwinn ebike Stallings only “occasionally” became involved with contacting Defendant’s customers regarding slow payment of invoices. Stallings Tr., p. 6 (lines 12-15). However, Stallings testified that, several weeks before the Preference Period, he became concerned about the delinquencies owing from the Debtors and called Lamar to inquire about Debtors’ financial condition.