Bankr. No. 01-40442; Adv. No. 01-4027, Chapter 7United States Bankruptcy Court, D. South Dakota
December 26, 2001
HOYT, United States Bankruptcy Judge.
Upon consideration of the parties’ recently filed briefs and the applicable statutes and case law and in light of the undisputed facts presented, the Court concludes that the bankruptcy estate’s interest in the subject funds is contingent on the contract provisions, which allow up to a three-year delay in full disbursement. Although Defendant’s choice in delaying full payment of the subject funds to the bankruptcy estate appears relatively indefensible, Trustee Lovald does not acquire any greater right to payment than what Debtor had on the petition date. See Dolphin Titan International, Inc. v. Gray Co. (In re Dolphin Titan International, Inc.), 93 B.R. 508 (Bankr.S.D.Tex. 1988); Cedar Rapids Meats, Inc. v. Hager (In re Cedar Rapids Meats, Inc.), 121 B.R. 562
(Bankr.N.D.Iowa 1990). Accordingly, the Court has no authority under either § 542 or § 543 to alter the contract terms and expedite the turnover. Unfortunately, creditors will have to wait.
An order granting summary judgment for Defendant will be entered.
1-26-01 Decision
Upon consideration of the parties’ recently filed briefs and the applicable statutes and case law and in light of the undisputed facts presented, the Court concludes that the bankruptcy estate’s interest in the subject funds is contingent on the contract provisions, which allow up to a three-year delay in full disbursement. Although Defendant’s choice in delaying full payment of the subject funds to the bankruptcy estate appears relatively indefensible, Trustee Lovald does not acquire any greater right to payment than what Debtor had on the petition date. See Dolphin Titan International, Inc. v. Gray Co. (In re Dolphin Titan International, Inc.), 93 B.R. 508 (Bankr.S.D.Tex. 1988); Cedar Rapids Meats, Inc. v. Hager (In re Cedar Rapids Meats, Inc.), 121 B.R. 562
(Bankr.N.D.Iowa 1990). Accordingly, the Court has no authority under either § 542 or § 543 to alter the contract terms and expedite the turnover. Unfortunately, creditors will have to wait.
An order granting summary judgment for Defendant will be entered.