United Virginia Bank Kanawha Valley Bank, N.A. The Charleston National Bank v. Slab Fork Coal Company, in Re Slab Fork Coal Company, Debtor

MICHAEL, District Judge.

This case is before the court on an appeal from the decision of the district court which upheld a bankruptcy court ruling. The issue presented is whether cash proceeds generated under a pre-bankruptcy petition contract for the supply of coal, which proceeds are received after the bankruptcy petition is filed, are subject to a pre-petition security interest in the contract and its proceeds.

The case comes before us on stipulated facts. Briefly stated, the appellee (hereinafter “Slab Fork”) was brought into bankruptcy court by United Virginia Bank, and several other…