In Re Cambria Clover Mercantile Co., Inc.

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

In this case, the debtor-in-possession has moved for a court order directing the dis bursement of funds, which were acquired by the debtor after the bankruptcy was commenced through § 547 preference actions. Both the secured creditor and the Committee of Unsecured Creditors claim the funds. For the reasons stated herein, we find that non-bankruptcy, state law may be applied to resolve this dispute. Therefore, we will direct the parties to prepare for an evidentiary hearing on the issue of whether the preference monies are subject to the security…