Diaconx Corp. v. ITT Corp. (In re Diaconx Corp.)

OPINION

BRUCE I. FOX, Bankruptcy Judge:

As a component of preference litigation initiated by the debtor, the parties here seek a determination of the relative priority of ITT’s security interest in certain property of the debtor. Although the issue presented for decision is narrow, I am required to interpret an ambiguous section of the Uniform Commercial Code involving priorities among conflicting security interests in the same collateral. Ultimately, based on the facts submitted and giving due consideration to the purposes underlying the disputed provision, I conclude that ITT’s purchase money…