In re New Orleans Auction Galleries Inc.
Jan
15
2013
Ruling
Debtor in possession did not owe debt to creditor under assumed consignment contract until payment was received postpetition.
Procedural posture
Creditor seller consigned certain artworks with debtor. A purchaser agreed to buy the artwork, but later stopped payment on two credit cards on which he charged the purchase. One of the credit card companies reversed itself postpetition and paid part of the purchaser's charge, but the other did not. Creditor had not been paid anything under the consignment.
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Court
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