Lawndale Steel Co. v. Magic Steel Co. (In Re Lawndale Steel Co.)

MEMORANDUM OPINION

ERWIN I. KATZ, Bankruptcy Judge.

This matter comes before the Court on the First Amended Complaint of Debtor Lawndale Steel Co., (“Lawndale”) seeking to avoid a setoff by defendant Magic Steel Co. (“Magic”), in the amount of $11,225.31.

I. FACTS

The relevant facts are undisputed and are contained in the parties’ stipulation of agreed facts, filed with the Court on January 25, 1993. On December 5, 1989, Lawn-dale purchased ste.el from Magic. Magic issued its invoice for $11,225.31 for the purchase. On December 22, 1989, Magic purchased steel from Lawndale. Lawndale issued its…