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IN RE Y-KNOT CONST., INC.

No. 07-6001MN.

369 B.R. 405 (2007)

In re: Y-KNOT CONSTRUCTION, INC., Debtor, David G. Velde, Trustee, Plaintiff-Appellee, v. First International Bank & Trust, Objector-Appellant.

United States Bankruptcy Appellate Panel of the Eighth Circuit.

Filed: June 8, 2007.

Attorney(s) appearing for the Case

Roger J. Minch, Fargo, ND, for appellant.

Chad R. Felstul, Fergus Falls, MN, for appellee Stenerson Brothers.

Logan M. Moore, Alexandria, MN, for appellee David Velde.

Before FEDERMAN, VENTERS and McDONALD, Bankruptcy Judges.

McDONALD, Bankruptcy Judge.

First International Bank & Trust appeals from the order of the bankruptcy court granting Trustee's motion to compromise a preference action against Stenerson Brothers Lumber Company. We reverse and remand for the following reasons.

I.

We are able to glean the following factual allegations underlying Trustee's motion to compromise from our review of the record on appeal. Y-Knot Construction ("Debtor") was in the business...

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