IN RE J.L. GRAPHICS, INC.

Bankruptcy Nos. 85-112, 80-346, Adv. Nos. 85-56, 81-26.

62 B.R. 750 (1986)

In re J.L. GRAPHICS, INC., Debtor. Dennis G. BEZANSON, Trustee, v. INDIAN HEAD NATIONAL BANK, Defendant. In re CROSS BAKING CO., INC., Debtor. NEW HAMPSHIRE BUSINESS DEVELOPMENT CORPORATION, Plaintiff, v. CROSS BAKING CO., INC., and Victor W. Dahar, Interim Trustee, Defendants.

United States Bankruptcy Court, D. New Hampshire.

May 8, 1986.


Attorney(s) appearing for the Case

Sherman Horton, Nashua, N.H., for Indian Head Nat'l. Bank.

Russell Hilliard, Concord, N.H., for N.H. Bus. Dev. Corp.

Dennis Bezanson, South Portland, Me., for trustee.

Victor Dahar, trustee.


MEMORANDUM OPINION

JAMES E. YACOS, Bankruptcy Judge.

These cases present the troublesome question of the effect upon the legal rights of a secured lender having a floating lien upon accounts receivable when its borrower commences a Chapter 11 reorganization proceeding and the parties proceed under some tentative agreement but fail to obtain any court order authorizing post-petition borrowing and attachment of the floating lien to post-petition accounts receivable...

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