In re G & R Mfg. Co., Inc., Bankruptcy No. 87-860-BKC-6P1
| Decision Date | 18 October 1988 |
| Docket Number | Bankruptcy No. 87-860-BKC-6P1,Adv. No. 87-110. |
| Parties | In re G & R MANUFACTURING CO., INC., Debtor. G & R MANUFACTURING CO., INC., Plaintiff, v. Frances Jean GUNIA, Defendant. |
| Court | United States Bankruptcy Courts. Eleventh Circuit. U.S. Bankruptcy Court — Middle District of Florida |
Charles F. Edwards, Orlando, Fla., for plaintiff.
Eric R. Jones, Melbourne, Fla., for defendant.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
This adversary proceeding is before the Court upon the complaint seeking to set aside as a preferential transfer a judicial lien imposed upon property of the plaintiff debtor pursuant to a Final Judgment of Dissolution of Marriage concerning Marian Adam Gunia and Frances Jean Gunia. The trial of this case was consolidated with the adversary proceeding styled as Marian Adam Gunia v. Frances Jean Gunia, Adversary Proceeding No. 87-111, and was held August 4, 1988, 91 B.R. 989. Upon the evidence offered, the Court enters the following findings of fact and conclusions of law:
FINDINGS OF FACT
The plaintiff in this case is involved in operating a metal machine shop business in Palm Bay, Florida. Its petition for relief under Chapter 11 of the Bankruptcy Code was filed April 9, 1987.
The principal stockholder of the plaintiff corporation is Marian Adam Gunia, who also filed a petition for relief under Chapter 11 of the Bankruptcy Code on April 9, 1987. Prior to May 23, 1985, he was married to the defendant in this adversary proceeding.
On May 23, 1985, the Circuit Court in and for Brevard County, Florida, entered a Final Judgment of Dissolution of Marriage terminating the marriage between Frances Jean Gunia and Marian Adam Gunia. The Final Judgment was subsequently modified by an Amended Final Judgment of Dissolution of Marriage entered September 26, 1985.
Both the original and amended final judgment provided that defendant was to receive lump sum alimony in the amount of $115,000, to be paid monthly installments of $1,250.00. In addition, the Circuit Court awarded to her as "equitable distribution of the marital property of the parties" three acres of improved industrial real property on which the plaintiff's business is located.
The Amended Final Judgment of Dissolution of Marriage entered September 26, 1985, further provides:
In the event that the petitioner Mr. Gunia sells or otherwise disposes of the principal business of G & R Manufacturing Company, Inc. during such time that the petitioner\'s obligation to pay lump sum alimony remains unsatisfied, the unpaid balance of the lump sum alimony shall be satisfied forthwith, and this judgment shall act as a lien upon the proceeds of such sale or disposition until the lump sum alimony obligation is satisfied.
When Mr. Gunia defaulted in his Court ordered payments, defendant filed a post-dissolution motion for contempt and enforcement of the judgments. Subsequently, on January 15, 1987, the Circuit Court entered an order of contempt which specifically found Mr. Gunia delinquent in his obligations to defendant in the amount of $133,603.67. The January 15, 1987, order also provides:
In the event that the petitioner/former husband Mr. Gunia sells, or otherwise disposes of the principal business of G & R Manufacturing Company, Inc., while the judgment for lump sum alimony as set forth in paragraph 1 above remains unsatisfied in whole, or in part, said judgment shall be satisfied from the proceeds of such sale and this order shall act as a lien upon the proceeds of such sale or disposition until the judgment for lump sum alimony is fully satisfied.
In its proposed Plan of Reorganization, the debtor proposes to sell its business to an unrelated third party. In order to reap the full benefit of the proposed sale, the plaintiff challenges that portion of the January, 1987, order which grants the defendant a lien against the debtor's business. More specifically, the plaintiff argues that the January, 1987, order grants the defendant an interest in debtor's property on account of an antecedent debt within the ninety day preferential transfer period of in 11 U.S.C. § 547(b).
The sole issue before the Court is whether the order entered January 15, 1987, gave defendant a security interest which may be avoided pursuant to 11 U.S.C. § 547(b). That statute provides:
To continue reading
Request your trial
-
In re Gunia
...adversary proceeding styled as G & R Manufacturing Co, Inc. v. Frances Jean Gunia, Adversary Proceeding No. 87-110, and was held August 4, 1988, 91 B.R. 991. Upon the evidence offered, the Court enters the following findings of fact and conclusions of law: FINDINGS OF FACT The plaintiff in ......