White Current Corp. v. Rural Utility Service (In Re Vermont Electric Generation & Transmission Cooperative, Inc.)

ISSUE

RULING ON DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

ROBERT L. KRECHEVSKY, Bankruptcy Judge. 1

I

The matter before the court, a motion for summary judgment filed by the defendant, Rural Utility Service (“RUS”) 2 , an agency of the United States Department of Agriculture, draws into question a course of dealing over the past 22 years of RUS in assisting local cooperatives, such as the debtor, to produce and distribute electricity in rural communities. White Current Corp. (“WCC”) raises the specific issue— equitable subordination — in a complaint it filed against RUS in the Chapter 7 case of…