Gray v. Patriot Bank (In Re Newbury Cafe, Inc.)

MEMORANDUM

JAMES N. GABRIEL, Chief Judge.

INTRODUCTION

On October 9, 1985, Newbury Cafe, Inc. (the “Debtor” or “Newbury Cafe”) filed a voluntary petition under Chapter 11 of the Bankruptcy Code. Approximately ten months later, on July 30, 1986, the Chapter 11 case was converted to a case under Chapter 7. The conversion followed this Court’s approval of a sale of all the estate’s assets for $305,000 to George Lewis Jr., the highest bidder in a sealed bid sale conducted by the Court.

Following the sale, on September 26, 1986, the Trustee filed a Complaint for Determination of Secured Claims and…