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IN RE CENTENNIAL TEXTILES, INC.

Bankruptcy Nos. 96 B 46472(BRL), 96 B 46473(BRL), Adversary No. 97-8501A (SMB).

227 B.R. 606 (1998)

In re CENTENNIAL TEXTILES, INC. and Dynasty Prints, Inc., Debtors. Hal M. HIRSCH, as Interim Trustee of Centennial Textiles, Inc. and Dynasty Prints, Inc., Plaintiffs, v. PENNSYLVANIA TEXTILE CORPORATION, INC., d/b/a Penn-Tex, and Joseph J. Hannagan, Jr., Defendants.

United States Bankruptcy Court, S.D. New York.

December 11, 1998.

Attorney(s) appearing for the Case

Gainsburg & Hirsch, New York City, Eric H. Lindenman, of counsel, for plaintiff.

Moritt, Hock & Hamroff, LLP, Garden City, New York, David A. Loglisci, of counsel, for defendants.

POST-TRIAL MEMORANDUM DECISION

STUART M. BERNSTEIN, Bankruptcy Judge.

The trustee commenced this adversary proceeding to recover damages, and for equitable subordination, based upon events that occurred during the debtors' failed chapter 11 cases. His complaint charges, in substance, that the defendants—Pennsylvania Textile Corporation, Inc. d/b/a PENN-TEX ("Penn-Tex"), and its vice president, Joseph J. Hannagan, Jr. — entered into a fraudulent...

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