IN RE LMA PROPERTIES, LLC (Bankr.D.Ariz. 2005)

RANDOLPH HAINES, Bankruptcy Judge

Based on the analysis set forth in In re Phoenix Restaurant Group, Inc., 2004 W.L. 3113719 (Bankr. M.D. Tenn. 2004), and the implications of the holding in In re Microage, Inc., 291 B.R. 503 (9^th Cir. BAP 2002), this Court concludes that a "subsequent new value" defense under § 547(c)(4) cannot be asserted on the basis of post-petition transfers. For that reason together with the additional findings of fact and conclusions of law stated on the record on February 8, 2005, the Trustee's motion for summary judgment should be granted. In addition, any claims, including administrative claims, asserted by or allowed to the Defendant should be disallowed until there is full payment of the preference liability together with interest at the federal judgment rate from the date of the complaint and the Trustee's costs. Counsel for the Trustee is requested to upload a form of judgment in accordance with this decision.