In Gorenstein, the Seventh Circuit found that “prejudgment interest should be presumptively available to victims of federal law violations. Without it, compensation of the plaintiff is incomplete and the defendant has an incentive to delay.” 874 F.2d at 436. The Circuit noted that there is no federal statutory interest rate on prejudgment interest, but recommended using the prime rate for prejudgment interest in such a situation. The prime rate is a “readily ascertainable figure which provides a reasonable although rough estimate of the interest rate necessary to compensate plaintiffs not only for the loss of the use of their money but also for the risk of default.” Id.
In sum, the foregoing evidence demonstrated that the transfers were not made in the ordinary course of dealing between Debtors and the Defendant. Rather, the Defendant made telephone calls to the Debtors requesting payment of their outstanding indebtedness and communicating to Debtors that new product would not be shipped unless at least some of the past due amounts were paid. These telephone calls from the Defendant to the Debtors were a departure from the prior course of dealing of the parties. Thus, the evidence showed that the payments were unusual in that they were different from the Debtors’ prior payment practices, and they resulted from unusual collection efforts by the Defendant. Thorholm testified that he had discussions with Murray and Lamar after each of Lamar’s telephone calls from Stallings.
If the badge is missing, you may still have a Schwinn. The manufacturer distributed unbranded or rebranded bikes through other companies, especially prior to the 1950s. Schwinn said he didn’t shutter his company because demand for high-quality craftsmanship has dried up. He said the schwinn beach cruiser main reason was that three of his seven employees were at or nearing retirement age, including himself at 69. In the 1980s, Waterford Precision started building cyclocross bikes. They are similar to the gravel bikes popular today, which also handle well on a range of surfaces.
W. Schwinn, grandson Frank Valentine Schwinn took over management of the company. While an award of prejudgment interest is generally within the bankruptcy court’s discretion, In re Vic Bernacchi Sons, Inc., 170 B.R. 647, 656 (Bankr.N.D.Ind. 1994), it has properly been held in actions to recover schwinn dealers a preferential transfers that the victorious plaintiff is entitled to prejudgment interest from the date of demand for return or, if no demand was made, from commencement of the adversary proceeding. In re Pearson Industries, Inc., 152 B.R. 546, 560 (Bankr.C.D.Ill. 1993); Vic Bernacchi, 170 B.R.
Defendant also argues that the new value advanced by True Fitness should be calculated on a consolidated basis since True Fitness did not deal separately with each Debtor. The only contract involving True Fitness and any of the Debtors is the Letter Agreement between True Fitness and Schwinn Bicycle Company. The evidence is undisputed that the affiliates were supplied with treadmills ordered pursuant to the Letter Agreement. As Lamar testified, treadmill orders were placed by Schwinn Bicycle Company rather than the individual subsidiaries or “Distribution Centers.” See Def. 8, p. 25 (line 12)-p.