In Re: Thompson Boat Company, Debtor. Randall L. Frank, Trustee v. Michigan State Unemployment Agency, Department of Consumer & Industry Services

OPINION

RYAN, Circuit Judge.

The Michigan State Unemployment Agency (UA) appeals the district court’s judgment affirming the decision of the bankruptcy court. The district court concluded that the UA’s pre-petition liens on property of the Thompson Boat Company, the bankruptcy debtor, did not reattach to post-petition preference proceeds recovered by a bankruptcy trustee. We will affirm.

I

On May 19, 1993, Thompson filed a Chapter 11 petition in federal bankruptcy court. The debtor’s case was subsequently converted to an action under Chapter 7 of the Bankruptcy Code with Randall L. Frank, the…