Shawnee State Bank v. First National Bank of Olathe (In Re Winders)

MEMORANDUM AND ORDER

VRATIL, District Judge.

Shawnee State Bank (“Shawnee State”) appealed the bankruptcy court order granting First National Bank of Olathe (“First National”) leave to file its proof of claim out of time and share in the distribution to general unsecured creditors of the bankruptcy estate. By order dated August 30,1996, this Court affirmed the bankruptcy court’s decision to allow First National leave to file a proof of claim out of time, but reversed its holding that First National was entitled to participate pro rata in the distribution to unsecured creditors under 11 U.S.C. §…