Sabratek Corp. v. LaSalle Bank, N.A. (In Re Sabratek Corp.)

OPINION 1

MARY F. WALRATH, Bankruptcy Judge.

Before the Court is the motion of Sabra-tek Corporation and its affiliates (“the Debtors”) for a preliminary injunction to enjoin Ralin Medical, Inc. (“Ralin”) from continuing an action against LaSalle Bank, N.A. (“LaSalle”) in Illinois state court in which Ralin seeks to draw on a letter of credit which the Debtors established with LaSalle. We conclude that such an injunction is not warranted and, therefore, deny the Motion.

I. BACKGROUND

On about June 1, 1999, the Debtors and Ralin entered into the Registration Rights Agreement pursuant to which the…