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IN RE COLONIAL DISCOUNT CORP.

Nos. 85-2298, 85-2308.

807 F.2d 594 (1986)

In re COLONIAL DISCOUNT CORPORATION, Debtor. James C. COURTNEY, Trustee, Plaintiff-Appellee and Cross-Appellant, v. OCTOPI, INC. and Joe McNeal, Defendants-Appellants and Cross-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided December 5, 1986.

Attorney(s) appearing for the Case

Sidney Mishkin, Mishkin, Cromer, Eaglesfield & Maher, Indianapolis, Ind., for debtor.

Jon B. Abels, Dann, Pecar, Newman, Talesnick & Kleiman, Indianapolis, Ind., trustee.

Before COFFEY and RIPPLE, Circuit Judges, and WILL, Senior District Judge.

WILL, Senior District Judge.

Colonial Discount Corporation ("CDC"), the debtor in this bankruptcy action, filed for reorganization under chapter eleven of the Bankruptcy Code. In the bankruptcy court, the trustee argued that certain transactions between CDC and appellants/cross-appellees Joe McNeal and Octopi, Inc. constituted avoidable preferences under 11 U.S.C. § 547 (1982 & Supp. II). On the trustee's motion for summary judgment, the bankruptcy court...

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