IN RE WAVERLY TEXTILE PROCESSING, INC.

Bankruptcy No. 97-33185-T, CM No. 97-1441.

214 B.R. 476 (1997)

In re WAVERLY TEXTILE PROCESSING, INC., Debtor.

United States Bankruptcy Court, E.D. Virginia, Richmond Division.

November 10, 1997.


Attorney(s) appearing for the Case

H. Slayton Dabney, Jr., Terri J. Keeley, McGuire, Woods, Battle & Boothe, LLP, Richmond, VA, for IPF.

Peter S. Partee, Edmund S. Whitson, III, Hunton & Williams, Richmond, VA, for Debtor.

Gregg R. Nivala, Asst. U.S. Trustee, Richmond, VA.

Kevin R. Huennekens, Maloney & Huennekens, Richmond, VA.

Bruce H. Matson, LeClair Ryan, Richmond, VA.


MEMORANDUM OPINION

DOUGLAS O. TICE, Bankruptcy Judge.

Imperial Premium Finance, Inc. ("IPF") financed the premiums for commercial insurance policies purchased by debtor in this bankruptcy case. As collateral for this loan, IPF took a security interest in the unearned premiums to which the insured would be entitled in the event the policies were canceled at any time before their expiration. Fearing the dissipation of its collateral as debtor continued...

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