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MATTER OF PRESCOTT

Nos. 85-3162, 85-3177 and 85-3203.

805 F.2d 719 (1986)

In the Matter of John B. PRESCOTT and Janet L. Prescott, Debtors. Appeals of MARINE BANK DANE COUNTY, Gateway Foods, Inc. & Jerry J. Armstrong, Trustee.

United States Court of Appeals, Seventh Circuit.

Decided November 4, 1986.

Attorney(s) appearing for the Case

Patricia M. Gibeault, Brynelson, Herrick, Bucarda & Dorschel, Madison, Wis., for Marine Bank Dane County.

Michael J. Collard, Minahan & Peterson, S.C., Milwaukee, Wis., for Gateway Foods.

Deniz N. Gursoy, Murphy & Desmond, S.C., Madison, Wis., for Trustee.

Before WOOD, CUDAHY and FLAUM, Circuit Judges.

CUDAHY, Circuit Judge.

John and Janet Prescott (the "debtors") funded their purchase of a Wisconsin grocery store with a loan from appellant Marine Bank Dane County that was secured, inter alia, by the store's inventory and accounts receivable. Appellant Gateway Foods, Inc. held a junior interest in this security. The debtors filed for bankruptcy in the United States Bankruptcy Court for the Western District of Wisconsin. The bankruptcy court found that during...

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