Exxon Corp. v. Compton Corp. (In Re Compton Corp.)

MEMORANDUM OPINION

JOHN C. FORD, Bankruptcy Judge.

The case at bar presents the narrow question of whether the 90 day improvement of position test found in Code section 553(b), 11 U.S.C. § 553(b), applies to a post-petition setoff. The parties have submitted the case on agreed facts and only ask that a determination be made on the narrow issue of law. Based on an analysis of the stipulated facts, arguments of counsel, briefs submitted to the Court, pleadings on file, and the applicable law, the Court is of the opinion that § 553(b) does not apply to post-petition setoffs.

On May 7,1982, an…