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    SmartBrief enables case brief popups that define Key Terms, Doctrines, Acts, Statutes, Amendments and Treatises used in this case.

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    Bankruptcy Keyed to Levitan, 3rd Ed.

    Matter of Tolona Pizza Products Corp.

    Citation:

    3 F.3d 1029 (1993)

    Facts

    Tolona Pizza Products Corporation, a pizza manufacturer, issued eight checks to Rose Packing Company, its sausage supplier, within 90 days before being forced into bankruptcy by its creditors. The checks totaled approximately $46,000 and resulted in Rose being paid in full, while Tolona’s other major trade creditors would receive only 13 cents on the dollar under the approved bankruptcy plan. Rose’s invoices stated “net 7 days,” but for years Tolona rarely paid within that timeframe, nor did Rose’s other customers. Most customers paid within 21 days, with Rose typically withholding future shipments if payment was later than 28-30 days. However, as a valued long-term customer, Tolona was permitted to make payments beyond these timeframes. The eight payments at issue were made between 12 and 32 days after invoicing, averaging 22 days, which was actually faster than Tolona’s pre-preference period average of 26 days.

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    Matter of Tolona Pizza Products Corp.