United States v. Emerald of Puerto Rico, Inc. (In Re Hospital Nuestra Señora De Guadalupe, Inc.)

OPINION AND ORDER

PEREZ-GIMENEZ, District Judge.

This is an appeal filed by the United States of America from the Order entered on January 20,1981, wherein the Bankruptcy Court denied United States’ objection to the payment by Hospital Nuestra Señora de Guadalupe, Inc., to Emerald of Puerto Rico, Inc. (hereinafter referred to as Emerald).

On June 18, 1979, the debtor filed bankruptcy under Chapter XI. Prior to June 18, 1979, debtor had entered into a factoring agreement with Emerald whereby the majority of debtor’s account receivables were assigned. Debtor initially claimed that its critical…