Legal Opinion
In Re Powerine Oil Company, Debtor. Committee of Creditors Holding Unsecured Claims v. Koch Oil Company
Court of Appeals for the Ninth Circuit
Decided July 12, 1995No. 92-56077PublishedCited by 36 opinions
1Opinion of the Court
Opinion by Judge KOZINSKI; Dissent by Judge FARRIS.
KOZINSKI, Circuit Judge.
Can an unsecured creditor be better off when the debtor defaults rather than paying off the debt? Yes: Law can be stranger than fiction in the Preference Zone.
I
Powerine Oil Company (the debtor here) obtained a $250.6 million line of credit from a syndicate consisting of several banks and insurance companies; the loan was secured by most of Powerine’s personal property. The security agreement provided that the collateral would serve as security for all letters of credit that “have been, or are in the future, issued on…
2Cases cited7 opinions
- Norwest Bank Worthington v. AhlersSupreme Court of the United States · 1988
- In Re E.R. Fegert, Inc., Debtor. Dan O'rourke, Trustee v. Seaboard Surety Company Coral Construction Company, Inc. Shotwell Paving CompanyCourt of Appeals for the Ninth Circuit · 1989
- 13 Collier bankr.cas.2d 1400, Bankr. L. Rep. P 70,902 in Re Lewis W. Shurtleff, Inc. And Frontier Properties, Inc., Debtors. Thomas D. Elliott, Trustee v. Frontier Properties/lp 102/meadow Glen Arms/79Court of Appeals for the Ninth Circuit · 1986
- Swarts v. Fourth National BankCourt of Appeals for the Eighth Circuit · 1902
- In Re Gold Coast Seed Company, Debtor, M. Nolden, Trustee v. Van Dyke Seed Company, Inc.Court of Appeals for the Ninth Circuit · 1985
2 more not listed; retrieve them via the Exa API.
3Cited by36 opinions
- P.A. Bergner & Co. v. Bank One, Milwaukee, N.A. (In re P.A. Bergner & Co.)Court of Appeals for the Seventh Circuit · 1998
- Manchester v. First Bank & Trust Co. (In Re Moses)Bankruptcy Appellate Panel of the Tenth Circuit · 2000
- Sigma Micro Corp. v. Healthcentral.com (In Re Healthcentral.com)Court of Appeals for the Ninth Circuit · 2007
- Village Nurseries v. Gould (In Re Baldwin Builders)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1999
- Lubman v. C.A. Guard Masonry Contractor, Inc. (In Re Gem Construction Corp. of Virginia)United States Bankruptcy Court, E.D. Virginia · 2000
31 more not listed; retrieve them via the Exa API.