Chemical Bank v. United States Lines (S.A.), Inc. (In Re McLean Industries, Inc.)

DECISION ON PLAINTIFF’S MOTION AND DEFENDANT’S CROSS MOTION FOR SUMMARY JUDGMENT PERTAINING TO ENTITLEMENT TO CERTAIN INSURANCE PROCEEDS

CORNELIUS BLACKSHEAR, Bankruptcy Judge.

This adversary proceeding ensues from an accident involving the cargo ship Delta Sud (the “Vessel”). Subsequent to the accident, the owner, United States Lines (S.A.), Inc. (“SA” or the “Debtor”) filed a petition under chapter 11 of the Bankruptcy Code (the “Code”). Upon approving a settlement between the Debtor and its insurance underwriters over the insurance payment due resulting from the accident, Judge Buschman…