Domestic Fuel Corp. v. Rainaldi (In Re Domestic Fuel Corp.)

MOTION AND CROSS-MOTION REGARDING DISPOSITION OF PLEDGED STOCK

HOWARD SCHWARTZBERG, Bankruptcy Judge.

Angelo Rainaldi (“Rainaldi”), a secured creditor in whose favor stock of two subsidiary companies of the debtor corporation, Domestic Fuel Corp., had been pledged by the debtor to secure payment to him of the selling price of the stock, exercised self-help and purported to sell to himself at a noticed sale title to the pledged stock. Rainaldi then called shareholders’ and directors’ meetings and elected himself the sole director and the president of the subsidiaries, ousting the debtor’s…