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.
Date:
Friday, November 9, 2018
Judge:
Judge Thomas L. Saladino