Official Comm. of Unsecured Creditors v. LG Funding, LLC (In re Cornerstone Tower Serv., Inc.), Ch. 11, BK16-40787, A17-4051 (Nov. 9, 2018)
The court, applying New York law, ruled on summary judgment in a preference action that a merchant cash advance ("MCA") agreement executed between the debtor and a funding company during the preference period was a true sale of receivables and not a disguised financing arrangement. The funding company's argument that the transfers were in the ordinary course of business required an inquiry into the facts, so the matter was set for trial.