28 B.R. 808 (Bkrtcy.W.D.Ky. 1983), 3-82-01970, In re Kentucky Flush Door Corp.

Docket Nº:Bankruptcy No. 3-82-01970.
Citation:28 B.R. 808
Case Date:March 21, 1983
Court:United States Bankruptcy Courts, Sixth Circuit

Page 808

28 B.R. 808 (Bkrtcy.W.D.Ky. 1983)


Bankruptcy No. 3-82-01970.

United States Bankruptcy Court, W.D. Kentucky.

March 21, 1983

Kenneth L. Sales, Louisville, Ky., for creditors.


G. WILLIAM BROWN, Bankruptcy Judge.

This matter comes before the Court on motion of Lifetime Doors, Inc., and West Coast Door, Inc., creditors, by counsel, for an order granting said creditors rights of reclamation to goods delivered to the debtor.

On September 7, 1982, the debtor herein filed a petition for relief under the provisions of Chapter 11 of the Bankruptcy Code, 11 U.S.C. Subsequently, on October 12, 1982, the creditors here filed a motion for a hearing to determine their rights of reclamation alleging only that they "... move the Court to grant them rights of reclamation to goods delivered to the Debtor-in-Possession on August 23, 1982, pursuant to the uniform commercial code [sic]...." Pursuant to this motion and by order of this Court on October 21, 1982, a hearing was set on November 9, 1982, relative to this matter.

Page 809

Thereafter, on October 28, 1982, the debtor-in-possession, by counsel, filed an objection to the motion for reclamation rights alleging that the rights of said creditors were not perfected pursuant to KRS 355.2-702, that another creditor held a priority lien in inventory of the debtor and acknowledging delivery of the goods in question on August 13, 1982.

The hearing was conducted and pursuant thereto, by Court order of November 10, 1982, the creditors were given to December 10, 1982, in which to submit evidence and a memorandum of legal authorities, and the debtor-in-possession was given until January 1, 1983, in which to submit a responsive memorandum. It may be noted that the debtor-in-possession on October 15, 1982, filed a motion to sell property consisting of remaining inventory, and the motion was granted by Order of this Court on October 21, 1982, following notice to all creditors and unless objections were submitted thereto. The creditors involved were apparently duly noticed on this motion and at no time objected to this sale.

On December 30, 1982, the debtor-in-possession filed its memorandum timely pursuant to the Court's Order of November 10, 1982. It was not until January 12, 1983, that the creditors filed their memorandum in support of rights of reclamation...

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