Jan
09
2009
- 11 U.S.C.
Ruling:
Triangular setoff among creditor, debtor and debtor's subsidiaries prohibited due to lack of mutuality.
Procedural posture:
A creditor had separate contracts with bankruptcy debtors, subsidiaries with a common corporate parent, and the contracts provided that any amount due to a subsidiary could be offset against amounts owed by other subsidiaries. The creditor owed an amount to one subsidiary but was owed amounts by the other two subsidiaries, and the creditor moved for relief from the automatic bankruptcy stay to effect a triangular setoff.
Issue:
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Commercial case opionion summary, case decided on January 09,2009, LexisNexis #0209-049