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 schwinn dealers 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.
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, 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.
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).
According to Thorholm, the payments were sent to Defendant because he understood that Defendant would not ship product to the Debtors unless they made payments on outstanding invoices. With regard to Defendant’s asserted ordinary course of business defense, the evidence to be considered starts with earlier Findings in the Common Issues Opinion. There it was found that Debtors were not operating in the Preference Period as they had previously because of their poor financial situation. Debtors experienced a severe cash crisis during the preference period and were unable to pay their payables as they came due in the ordinary course. Debtors had violated certain debt covenants in their loan agreements with their banks in early 1992.
Here the doctrine of judicial estoppel has no application or relevancy to this case because the legal and factual issues involved in this insolvency hearing and the Defendant’s preference trial were completely different. The issue in the insolvency hearing was whether the consolidated Debtors were insolvent under a balance sheet test during the Preference Period. The Code uses a “balance sheet” test schwinn ebike for the purpose of establishing insolvency in a preference action. Common Issues Opinion, 192 B.R. At 486, 11 U.S.C. § 101(32). In order to apply the balance sheet test in this case, the Committee and the Court had to consolidate the Debtors’ schedules in order to eliminate intercompany transactions which had no real value and to determine the accurate value of Debtors’ assets and liabilities.