In Re Preston Lumber Corp.

MEMORANDUM

ALAN JAROSLOVSKY, Bankruptcy Judge.

The debtor’s attempt to reorganize has failed, and John MacGregor has been appointed trustee and charged with liquidating the estate. He has retained an auctioneer for this purpose and a sale date has been set.

Creditor Sumitomo Bank has a lien on the debtor’s sawmill equipment and rolling stock. This collateral in encumbered far in excess of its worth. Accordingly, the estate should have no interest in administering these assets and the trustee would be expected to abandon them. However, for reasons which make the court very uncomfortable, the…