The first transferee of an avoidable transfer, i.e., the party that received the transfer directly from the debtor. The Code provides that a trustee or debtor in possession may recover property, or the value of the property, preferentially or fraudulently transferred to the initial transferee or the entity for whose benefit (e.g., a lender or guarantor) such transfer was made even though the initial transferee received the transfer in good faith and without knowledge of its voidability.
Bankruptcy Code ยง 550(a)(1), (2). See also Avoidance Action, Fraudulent Transfer, Immediate Transferee, Mediate Transferee, Preference.