United States v. Wincom Corp. (In Re Wincom Corp.)

MEMORANDUM ON DEBTOR’S COUNTERCLAIM RELATIVE TO GOVERNMENT’S INTEREST IN CONTRACT MATERIALS

HAROLD LAVIEN, Bankruptcy Judge.

The debtor, as a Chapter 11 debtor-in-possession, rejected an executory contract it had entered into with the United States government, under which it was to manufacture 24 antennae for submarines. The government submitted a proof of claim on which it described itself as an unsecured creditor. Subsequently, the debtor noticed out a private sale under which, according to Bankruptcy Rule 6004(b) and local practice, any party in interest was allowed an opportunity to object.…