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MATTER OF FLAGSTAFF FOODSERVICE CORP.

Bankruptcy Nos. 81-B-11430 to 81-B-11436.

16 B.R. 132 (1981)

In the Matter of FLAGSTAFF FOODSERVICE CORPORATION, et al., Debtors.

United States Bankruptcy Court, S.D. New York.

December 23, 1981.

Attorney(s) appearing for the Case

Levin & Weintraub by Elias Mann, New York City, for debtors.

Angel & Frankel, P.C., New York City, for Creditors' Committee; Joshua J. Angel, Sanford P. Rosen, New York City, and Emmett Creahan, (Law Clerk) of counsel.

Wachtell, Lipton, Rosen & Katz, New York City, for General Electric Credit Corporation; Bernard Mindich and Michael S. Himmel, New York City, of counsel.

OPINION

ROY BABITT, Bankruptcy Judge:

The sole issue presented on this multi-faceted motion brought by the committee of unsecured creditors in the Chapter 11 cases of Flagstaff Foodservice Corporation and several of its affiliates (collectively "Flagstaff") is whether General Electric Credit Corporation ("GECC"), a long-time lender to the debtors, has a valid security interest in the accounts and inventory of one of the debtors. Flagstaff Foodservice Corporation...

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