Bank of New England, N.A. v. Klein

MEMORANDUM ON SUMMARY JUDGMENT

HUGHES, District Judge.

The Bank of New England sued Michael Klein to enforce his guaranty of its loan to Aerospace Technologies, Inc. The year after Klein became a surety for Aerospace, it filed for protection under Chapter 11 of the Bankruptcy Act. The parties have both moved for summary judgment on Klein’s liability for the bank’s unpaid post-petition loans to the debtor-in-possession and the reorganized debtor corporation.

Summary judgment will be granted for Klein because: (1) the post-petition Aerospace was a different legal entity from the one whose debts…