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MATTER OF SAYBROOK MFG. CO., INC.

No. 91-8542.

963 F.2d 1490 (1992)

In the Matter of SAYBROOK MANUFACTURING CO., INC., Clinton Marine Products, Inc., Sero Holdings, Inc., the Sero Company, a/k/a Sero of New Haven, a/k/a Ms. Sero, a/k/a Par-Ex, a/k/a Wrecked, a/k/a Scoundrel, a/k/a Jennifer Kirk, a/k/a C.J. Taft, Debtors. Jeffrey SHAPIRO and Seymour SHAPIRO, Plaintiffs-Appellants, v. SAYBROOK MANUFACTURING COMPANY, INC., Clinton Marine Products, Inc., Sero Holdings, Inc., the Sero Company, Mfg. Hanover Trust, Manufacturer's Hanover Trust Company, Manufacturer's Hanover Bank (Delaware), Union Trust Company, an Irving Commercial Corporation, Defendants-Appellees.

United States Court of Appeals, Eleventh Circuit.

June 25, 1992.

Attorney(s) appearing for the Case

Ward Stone, Jr., Adams & Hemingway, Macon, Ga., for plaintiffs-appellants.

C. David Butler, Lee Brooks Rivera, Alston & Bird, Atlanta, Ga., for defendants-appellees.

Before COX, Circuit Judge, JOHNSON and REAVLEY, Senior Circuit Judges.

COX, Circuit Judge:

Seymour and Jeffrey Shapiro, unsecured creditors, objected to the bankruptcy court's authorization for the Chapter 11 debtors to "cross-collateralize" their pre-petition debt with unencumbered property from the bankruptcy estate. The bankruptcy court overruled the objection and also refused to grant a stay of its order pending appeal. The Shapiros appealed to the district court, which dismissed the case as moot under section 364(e) of the Bankruptcy...

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