Bankr. L. Rep. P 69,833 Lawson F. Bernstein, Trustee in Bankruptcy of Frigitemp Corp. v. South Central Bell Telephone Company

The trustee in bankruptcy of Frigitemp Corporation appeals from a judgment rejecting his demand for the recovery of funds paid by the bankrupt to South Central Bell Telephone Company, alleged to have been an illegal preference under section 60b of the Bankruptcy Act of 1898. 1 The sole question we must decide is whether Bell had reasonable cause to believe that Frigitemp was insolvent at the time of the payment. Finding that it did not, we affirm.

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Frigitemp was a publicly-held New York corporation that manufactured and installed furniture, insulation, and galley equipment on board ships.…