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D Corp. is in debt to 26 different creditors, from A Bank to Z Supplies. A Bank, D's largest creditor, makes an additional $330,000 unsecured
D Corp. is in debt to 26 different creditors, from A Bank to Z Supplies. A Bank, D's largest creditor, makes an additional $330,000 unsecured loan to D Corp. to be used to pay Z Supplies so that Z Supplies will continue to supply D Corp. The D Corp./A Bank loan agreement expressly provides that D Corp. will use the loan proceeds only to pay Z Supplies. D Corp. does indeed use the $330,000 loaned by A Bank to pay Z Supplies. Eighty days later, D Corp. files for bankruptcy. Is the $330,000 payment to Z Supplies a preference
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