Matter of Lake Hopatcong Water Corp.

OPINION

VINCENT J. COMMISA, Bankruptcy Judge.

This matter is before the Court on a motion for summary judgment by the trustee in bankruptcy of Lake Hopatcong Water Corporation, the bankrupt herein, and the cross-motion of the United States Small Business Administration (SBA) to dismiss Counts I and II of the trustee’s complaint or in the alternative for summary judgment.

On June 22, 1978 the Lake Hopatcong Water Corporation (LHWC) filed a petition for arrangement under Chapter XI of the Bankruptcy Act. On the same day an order appointing Daniel J. Moore, Esq., receiver of the estate was entered.…