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IN RE SCRANTON DRY GOODS CO., INC.

Bankruptcy Nos. 79-13, 79-14, 5-80-00577 and 5-80-00578.

28 B.R. 620 (1983)

In re SCRANTON DRY GOODS CO., INC. t/a Oppenheims, Bankrupt. In re CONSTANCE REALTY, INC., Debtor. In re WANOR, INC., Debtor.

United States Bankruptcy Court, M.D. Pennsylvania.

April 7, 1983.

Attorney(s) appearing for the Case

Doran & Nowalis, John H. Doran, Robert C. Nowalis, Wilkes-Barre, Pa., for trustee.

Nogi, O'Malley & Harris, John Appleton, Norman Harris, Myles Wren, Scranton, Pa., for Oppenheim's, Constance Realty, Inc., and Wanor, Inc.

Saul, Ewing, Remick & Saul, William T. Windsor, Jr., Philadelphia, Pa., for Northeastern Bank.

Mattes, Mattes & Mattes, Roger Mattes, Scranton, Pa., for Trade Creditors.

Hughes, Nicholls & Moran, W. Boyd Hughes, Scranton, Pa., for Community Central Energy.

Levy, Preate & Purcell, Ernest Preate, Scranton, Pa., for Scranton Chamber of Congress.

OPINION AND ORDER

THOMAS C. GIBBONS, Bankruptcy Judge:

At issue in this case are creditors' objections to a proposed plan of distribution in a Chapter VII proceeding. The objections challenge the validity of a security interest granted without court approval by the debtor to the Chapter XI creditors' committee prior to the order of adjudication for Chapter VII relief. For the reasons stated herein we find the security interest void.

The facts are...

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