In re Arlco, Inc.
United States Bankruptcy Court for the Southern District of New York
239 B.R. 261 (1999)
Relevant factsFree
Textile supplier Galey & Lord (plaintiff) sold goods to Arley Corporation (debtor, later renamed Arlco), which had a perfected security interest in its inventory held by lender CIT Group (defendant); after Arley became insolvent and filed for Chapter 11, Galey timely demanded reclamation of goods delivered within the preceding ten days under Bankruptcy Code § 546(c), and later moved for summary judgment on its reclamation right, which the bankruptcy trustee opposed.
IssueFree
Whether a seller's statutory right of reclamation is superior to the rights of all other creditors, including a secured creditor with a prior perfected security interest.