Bay State Yacht Sales, Inc. v. Squantum Engine & Service Co. (In Re Bay State Yacht Sales, Inc.)

MEMORANDUM ON VALIDITY OF FEDERAL AND MASSACHUSETTS STATE MARITIME LIENS

HAROLD LAVIEN, Bankruptcy Judge.

These issues arise before this Court in an adversary proceeding instituted by the debtor, Bay State Yacht Sales, Inc. (Bay State), against Squantum Engine & Services Co., Inc. (Squantum). By this action the debtor seeks, as a preferential transfer pursuant to 11 U.S.C. §§ 545(2) and 547, to avoid Squantum’s alleged liens against 27 boats owned and in the possession of the debtor.

The facts of this case are generally undisputed. The debtor operated a retail boat sales dealership in Quincy,…