In Re Oriental Rug Warehouse Club, Inc.

MEMORANDUM ORDER DISALLOWING SECURED CLAIM OF YAS-HAR RUG CO., INC.

NANCY C. DREHER, Bankruptcy Judge.

The above-entitled matter came on for hearing before the undersigned on December 4, 1996, on the objection of the Debtor, Oriental Rug Warehouse Club, Inc., to the secured claim of Yashar Rug Co., Inc. (‘Yas-har”). Appearances were noted on the record. After carefully considering the arguments of counsel, the Court has determined that Yashar’s secured claim should be disallowed.

FACTS

1. The Debtor is a Minnesota corporation engaged in the business of selling oriental rugs and carpets at retail.…