In Re WWG INDUSTRIES, INC., Debtor, WWG INDUSTRIES, INC., Plaintiff-Appellant, v. UNITED TEXTILES, INC., Defendant-Appellee

PITTMAN, District Judge:

This appeal arises from a Chapter 11 bankruptcy proceeding in which WWG Industries, Incorporated (WWG), is the debt- or-in-possession. Both the bankruptcy court and the district court held that WWG’s interest as debtor-in-possession in certain property was inferior to a mechanic’s lien held by United Textiles, Incorporat ed (United). WWG contends that both courts were in error. This court affirms the district court for the reasons set out herein.

I. Factual Background and Prior Proceedings

The facts in this case are not disputed. Prior to filing a petition for…