Quick "going out of business" sales with proceeds going directly to the creditors really shouldn't be held inside of 90 days before bankruptcy. That's a voidable transfer -- and paying the costs of the sale isn't the giving of new value.
Floating lien defense not valid where the interest is unsecured.
Amounts on deposit with creditor bank are subject to a security interest -- nothing more need be done to achieve setoff protections.
Bankruptcy court's arithmetic was correct.
David G. Velde v. Border State Bank