Ash Handkerchief Corp. v. Hickory Finishing, Inc. (In Re Ash Handkerchief Corp.)

MEMORANDUM DECISION REGARDING THE VALIDITY OF DEFENDANT’S LIEN

STUART M. BERNSTEIN, Bankruptcy Judge:

This adversary proceeding requires us to determine the nature and extent of a textile processor’s hen under North Carohna law. On the petition date, the defendant Hickory Finishing, Inc. (“Hickory”), held goods dehv-ered by the plaintiff, Ash Handkerchief Corp., d/b/a American Sock & Hosiery (the “debtor” or “Ash”), for processing. Ash owes Hickory substantial sums in connection with unpaid prepetition processing charges, and Hickory asserts a statutory hen in the goods it held. Ash commenced…