General Electric Capital Corp. v. Union Planters Bank, N.A. (In re Machinery, Inc.)

MEMORANDUM OPINION

DAVID P. McDONALD, Bankruptcy Judge.

General Electric Capital Corporation (“GE Capital”) filed this adversary complaint against Union Planters Bank (“Union Planters”). The parties’ dispute centers on which entity’s security interest had priority with respect to certain cash proceeds (the “Lift Proceeds”) generated post-confirmation by Debtor, Machinery, Inc. (“Machinery”). Because Union Planters was a transferee of the Lift Proceeds, it took those proceeds free of GE Capital’s superior security interest. The Court will accordingly enter judgment in favor of Union Planters.

JURI…