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MATTER OF XONICS, INC.

No. 86-2084.

813 F.2d 127 (1987)

In the Matter of XONICS, INC., et al., Debtors. ELSCINT, INC., and Elscint Imaging, Inc., Appellants, v. FIRST WISCONSIN FINANCIAL CORPORATION, Appellee.

United States Court of Appeals, Seventh Circuit.

Decided February 26, 1987.

Attorney(s) appearing for the Case

Jerome B. Meites, McDermott, Will & Emery, Chicago, Ill., for appellants.

John P. Messina, Goldberg, Kohn, Bell, Black, Rosenbloom & Moritz, Ltd., Chicago, Ill., for appellee.

Before BAUER, Chief Judge, and COFFEY and EASTERBROOK, Circuit Judges.

EASTERBROOK, Circuit Judge.

Both Elscint, Inc., and First Wisconsin Financial Corp. had security interests in receivables of Xonics Medical Systems, Inc., one of a group of related corporations. Elscint acted as collection agent for itself and First Wisconsin, paying over funds attributable to the accounts in which First Wisconsin had an interest. After the Xonics group filed petitions in bankruptcy, Elscint asked the bankruptcy...

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