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IN RE SGSM ACQUISITION CO., LLC

Nos. 05-30445, 05-30455.

439 F.3d 233 (2006)

In the Matter of: SGSM ACQUISITION COMPANY, LLC, Debtor. G.H. Leidenheimer Baking Company, Ltd., Appellant, v. R. Patrick Sharp, III, Appellee. In the Matter of: SGSM Acquisition Company, LLC, Debtor. Patton Sausage Company, Inc.; A.T. Patton Company, Inc., Appellants, v. R. Patrick Sharp, III, Appellee.

United States Court of Appeals, Fifth Circuit.

February 6, 2006.

Attorney(s) appearing for the Case

William C. Gambel (argued), Milling Benson Woodward, New Orleans, LA, for Appellants.

Jamie Dodds Cangelosi (argued), Douglas S. Draper, Deborah W. Fallis, Heller, Draper, Hayden, Patrick & Horn, New Orleans, LA, for Appellee.

Before JONES, Chief Judge, and DeMOSS and CLEMENT, Circuit Judges.

EDITH H. JONES, Chief Judge:

Appellants G.H. Leidenheimer Baking Company, Ltd. ("Leidenheimer") and Patton Sausage Company ("Patton") bring this consolidated appeal, challenging the lower courts' treatment of preference payments each received from a grocery store chain before it filed bankruptcy. See 11 U.S.C. § 547(b). Because none of the payments at issue qualified for the ordinary course of business defense,1 and the subsequent...

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