Anderson-Walker Industries, Inc. v. Small Business Administration (In Re Anderson-Walker Industries, Inc.)

MEMORANDUM OF DECISION

PETER M. ELLIOTT, Bankruptcy Judge.

Plaintiff filed a voluntary petition under Chapter 11 on April 9,1980. On telephoned notice to the Unofficial Creditors’ Committee and to the Small Business Administration (“SBA”), plaintiff’s application for permission to use cash collateral, to-wit, accounts receivable, was heard on April 11, 1980.

The SBA holds a security interest in the debtor’s accounts receivable, machinery, fixtures and equipment, office furniture and inventory. The issue before me is whether adequate protection is afforded the SBA.

The original amount of the SBA…