Prevue Products, Inc. v. Morton Shoe Companies (In Re Morton Shoe Companies)

MEMORANDUM ON CLAIM AND COUNTERCLAIM

HAROLD LAYIEN, Bankruptcy Judge.

The controversy in this proceeding arises out of the sale of the debtor’s stock in its manufacturing subsidiary, Hampshire Manufacturing Corp, (Hampshire) to Prevue Products, Inc. (Prevue). The terms of the sale were encompassed in a lengthy agreement dated July 31,1981, as amended October 2, 1981. (Agreement). Prevue is now claiming that it is owed money by Morton Shoe Companies, Inc. (Morton), the debtor, both for breaches of the Agreement and under the specific terms of the Agreement. The largest controversy involves a…