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Dev. Co.), 930 F.2d 648 (8th Cir. 1991).
The purpose of the new value defense is to encourage trade creditors to continue dealing with troubled businesses and to treat fairly a creditor that has replenished estate after having received preference. In re Boston Pub. Co. Inc., 209 B.R. 157 (Bankr. D. Mass. 1997). When debtor makes preferential payment and creditor later supplies value to the debtor for which there are no further payments made, creditor is entitled to reduce amount of any recoverable preference by amount of new value that it gave, in effect "netting out" the two transactions. In re Chez Foley, Inc., 211 B.R. 25 (Bankr. Minn. 1997).
A Ponzi scheme investor was not entitled to invoke new value exception to on basis of his "reinvesting" certain commissions with Chapter 7 debtor operators rather than receiving actual dollars from debtors in payment of such commissions. In re Ramirez Rodriguez, 209 B.R. 424 (Bankr. S.D. Tex. 1997).
Schlant v. Schueler (In re Buffalo Auto Glass), 187 B.R. 451 (Bankr. W.D.N.Y. 1995). The court rejected a per se rule that forbearance can never be new value, and instead stated that if forbearance is the new value asserted, the creditor must prove the actual value to the debtor in money or money's worth. In so doing, the court noted that often times evidence of such value will be too speculative to be meaningful: The court denied a portion of the trustee's motion for summary judgment and instructed that there be a trial on the discrete issue of whether the defendant's forbearance of a paycheck while she continued to work for the debtor augmented the estate so as to constitute new value. The Seventh Circuit recently upheld the denial of the new value exception to a creditor who claimed that his forbearance from reporting the debtor's non-payment to Microsoft provided new value to debtor by allowing the continued use of the software. The court focused on the fact that it was Microsoft, rather than the creditor, who had the right to revoke the license. In re ABC-Naco, Inc., 483 F.3d 470, 472 (7th Cir. 2007).
Clark v. Frank B. Hall Co. (In re Sharoff Food Serv., Inc.), 179 B.R. 669 (Bankr. D. Colo. 1995). Insurance broker's provision of insurance considered new value. In NMI Sys., Inc. v. Pillard (In re NMI Sys., Inc.), 179 B.R. 357 (Bankr. D. D.C. 1995), the Debtor's former employee's services constituted new value every time new services were performed. See also Yaquinto v. Arrow Financial Services (In re Brook Mays Music Co.), 418 B.R. 623 (Bankr. N.D. Tex. 2009) (creditor could use services rendered as new value). A fee that a creditor levies without providing corresponding value to the debtor does not constitute "new value." In re Bridge Info. Sys., 287 B.R. 258 (Bankr. E.D. Mo. 2002). Release of an unperfected security interest does not constitute "new value." Belfance v. Buonpane (In re Omega Door Co., Inc.), 306 Fed. Appx. 65 (5th Cir. 2009). Delivery of furniture by creditor furniture company to debtor constituted "new value." Englander v. Hekman
