In re E-Z Convenience Stores, INC.

Avoidance - Surety was "creditor" of Chapter 11 debtor at the time of prepetition transfer of collateral.

A surety was a "creditor" of a Chapter 11 debtor at the time of a prepetition transfer of collateral to the surety for purposes of the trustee's preference avoidance claim. The surety was obligated to pay any claims made by obligees under the bonds as the debtor's surety, and the debtor was in turn obligated to indemnify the surety for any such payments. Thus, the surety had a contingent claim against the debtor for reimbursement that became fixed if, and when, a claim was made against a bond.