Unites States: Eleventh Circuit Holds Payment of 503(b)(9) Administrative Expense Claims Do Not Reduce Subsequent New Value Preference Defense

The Eleventh Circuit in Auriga Polymers Inc. v. PMCM2, LLC joined the Third Circuit in concluding that post-petition payments for the value of goods received by a debtor within 20 days before the petition date do not reduce a creditor's "subsequent new value" preference defense.