Gonzales v. Food Marketing Group (In re Furr's Supermarkets, Inc.)

MEMORANDUM IN SUPPORT OF ORDER GRANTING IN PART AND DENYING IN PART TRUSTEE’S MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT FOOD MARKETING GROUP’S CROSS-MOTION FOR SUMMARY JUDGMENT

JAMES S. STARZYNSKI, Chief Judge.

These dueling motions for summary judgment raise, among other issues, the question of whether a chapter 11 debtor in possession’s postpetition overpayment for goods to a creditor vendor can be offset by the creditor’s administrative reclamation claim. The Court finds that, at least where as in this case it is likely that the estate is administratively insolvent, no offset may be…