Real estate material and services suppliers, rejoice! Recent favorable court decisions upholding protection from preference risk.(CREDIT COLUMN)

Consider the following scenario: You are a supplier of goods and/or services for the construction or improvement of real property. The general contractor or subcontractor with whom you had been dealing files for bankruptcy. You had received payments from the general contractor or subcontractor within 90 days of the bankruptcy filing that are subject to preference attack.

Well, do not fret; there are two recent court decisions that raise defenses to any preference attack in these circumstances. In one case, In re IT Group, Inc., out of the United States Bankruptcy Court in Delaware, subcontractors on a New York construction project were subject to preference ...