Security Bank & Trust Co. of Blackwell v. Case (In Re George)

MEMORANDUM OF DECISION

JOHN K. PEARSON, Bankruptcy Judge.

These cases are before the court for ruling on the trustees’ challenges to various creditors’ claims to Payment in Kind (PIK) Certificates in the trustees’ possession. The facts are stipulated and are summarized below. The parties have exhaustively briefed the issues and the matters are ready for ruling. This is strictly a legal issue, as the trustees’ challenge the validity of the creditors’ security interests on the theory that no such state law interest can attach under the applicable C.C.C. regulations and other grounds.

APPEARANCES

In…