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IN RE T.B. WESTEX FOODS, INC.

Bankruptcy No. 88-70099, Adv. No. 88-7023.

96 B.R. 77 (1989)

In re T.B. WESTEX FOODS, INC., Debtor. T.B. WESTEX FOODS, INC., Plaintiff, v. ALASKA CONTINENTAL BANK, Defendant.

United States Bankruptcy Court, W.D. Texas, Midland-Odessa Division.

January 24, 1989.

Attorney(s) appearing for the Case

Vi Lea Borland, Midland, Tex., for debtor/plaintiff, T.B. Westex Foods, Inc.

H.P. Brelsford, Houston, Tex., for defendant, Alaska Continental Bank.

Rodrigo M. Rodriguez, Law Office of Robert Hohenberger, P.C., Houston, Tex., for Interpleader, Federal Deposit Ins. Corp.

OPINION

RONALD B. KING, Bankruptcy Judge.

The issue presented in this adversary proceeding is whether two involuntary transfers by the Debtor to a non-insider creditor, but which benefitted an insider of the Debtor, can be set aside and recovered as preferences by the Debtor pursuant to Sections 547 and 550 of the Bankruptcy Code.1 In the circumstances of this case, the Court holds that they cannot be recovered by the Debtor...

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