Roberts v. National Bank of Commerce

JAMES C. HILL, Circuit Judge:

This appeal concerns the priority in distribution of the estate of Mill Industries, Inc. [hereinafter the “debtor”], which was adjudicated a bankrupt and ordered liquidated in a Chapter X reorganization proceeding. See 11 U.S.C. §§ 501-676 (1976). Prior to the initiation of the current proceedings, National Bank of Commerce, respondent, had made secured loans to the debtor in an amount in excess of $1,200,000 [hereinafter the “pre-petition debt”]. The courts below found that these loans had given respondent valid, indefeasible liens on all of the debtor’s…