Parlow v. Bank of New York (In Re Hunter Outdoor Products, Inc.)

MEMORANDUM AND ORDER

PAUL W. GLENNON, Bankruptcy Judge.

The above-captioned complaint by the trustee in bankruptcy seeks to have the purported first-lien position of the defendant, The Bank of New York (the “Bank”), subordinated to all general creditors of the debtor. The Complaint alleges generally that the Bank so dominated and controlled the debtor’s business, to the detriment of general unsecured creditors, that the doctrine of equitable subordination should be applied to place the Bank last in the line of creditors seeking payment from the debt- or’s estate.

In connection with his…