Nicholson v. Core (In Re Carolee's Combine, Inc.)

ORDER

HUGH ROBINSON, Bankruptcy Judge.

This case arises out of a no-minimum, no-reserve auction venture conducted by the bankrupt Carolee’s Combine, Inc., in Atlanta, Georgia, on October 8 and 9, 1976. The auction failed, grossing only $625,-000.00 against liabilities of $850,000.00. Because the only assets of the bankrupt were the items sold at the auction, it was insolvent both before and after the auction.

Included in the bankrupt’s debt of $850,-000.00 were obligations to individuals and entities providing the seed money for the venture. The first question in this case is whether the…