IN RE KORS, INC.

Civ. A. No. 85-262.

64 B.R. 163 (1986)

In re KORS, INC., Debtor. David D. ROBINSON, Trustee, v. The HOWARD BANK, Rutland Industrial Development Corporation, and Small Business Investment Corporation of Vermont, Inc.

United States District Court, D. Vermont.

July 18, 1986.


Attorney(s) appearing for the Case

Jerome I. Meyers, White River Junction, Vt., for trustee Robinson.

Richard A. Hull, William C. Dagger, Dick, Hackel & Hull, Rutland, Vt., for Howard Bank.

James S. Abatiell, Abatiell & Abatiell, Rutland, Vt., for Rutland Industrial Development Corp.

Andrew R. Field, Montpelier, Vt., for Small Business Inv. Corp. of Vt.


OPINION

HOLDEN, Senior District Judge.

The Howard Bank (the "Bank"), by this appeal challenges the order and underlying rulings of the bankruptcy court concerning the disposition of the proceeds from the sale of certain machinery and equipment of the bankrupt debtor Kors, Inc. The bankruptcy court, acting on the amended complaint of the trustee, avoided the unperfected security interest of the Bank in the collateral. The court's order not only preserved...

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