IN RE GREATER SOUTHEAST COMMUNITY HOSP. FOUNDATION

Bankruptcy No. 99-01159.

237 B.R. 518 (1999)

In re The GREATER SOUTHEAST COMMUNITY HOSPITAL FOUNDATION, INC., et al. (members of the Greater Southeast Healthcare System), Debtors.

United States Bankruptcy Court, District of Columbia.

August 20, 1999.


Attorney(s) appearing for the Case

David E. Rice, Venable, Baetjer & Howard, Baltimore, MD, for debtor.

Robert D. Perrow, Richmond, VA, for the Bank of New York ("Indenture Trustee").

Peter D. Isakoff, Weil, Gotshal & Manges LLP, Washington, DC, for Daiwa Healthco-3 LLC.


DECISION RE EFFECT OF § 551

S. MARTIN TEEL, Jr., Bankruptcy Judge.

The issue before the court is whether 11 U.S.C. § 551 applies when the debtor, prior to the commencement of its bankruptcy case, has sold property that is subject to an avoided lien. The court concludes that § 551 does apply.1

FACTS

In these jointly administered cases, Greater Southeast Community Hospital Corporation, Inc...

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