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HOUSTON HEAVY EQUIPMENT CO., INC. v. GOULD

Civil Action No. H-92-3706.

198 B.R. 693 (1996)

HOUSTON HEAVY EQUIPMENT COMPANY, INC., Plaintiff, v. Ed GOULD, et al., Defendants.

United States District Court, S.D. Texas.

July 12, 1996.

Attorney(s) appearing for the Case

Timothy L. Wentworth, Houston, Texas, for Plaintiff.

Gary G. Lyon, Dallas, Texas, for Defendants.

Opinion on Summary Judgment

HUGHES, District Judge.

1. Introduction.

An equipment company repaid a bank loan six months before it filed for bankruptcy. Because two officers of the company guaranteed the loan, the bankruptcy trustee seeks to avoid the loan payment on the theory that the bank assumed the character of the guarantors as an insider-creditor. Because the bank was not an insider, the trustee will take nothing from the bank. The repayment...

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