In Re Anderson-Walker Industries, Inc., Debtor. Anderson-Walker Industries, Inc. And John P. Stodd, Trustee v. Lafayette Metals, Inc.

John P. Stodd, Trustee in the Chapter 7 case of Anderson-Walker Industries, Inc. (the “Debtor”), appeals from the district court’s order affirming the bankruptcy court’s denial of the Trustee’s Objection to Claim. We affirm.

I

FACTS AND PROCEEDINGS

In April 1980, the Debtor filed a petition under Chapter 11 of the Bankruptcy Code. Lafayette Metals, Inc. (“Lafayette”) had shipped raw materials to the Debtor over a period of several years preceding the filing of the petition. On its schedules, the Debt- or listed Lafayette as the single largest creditor and indicated Lafayette was owed about $208,000. Lafayette continued to ship to the Debtor raw materials after the filing on a cash-against-delivery basis. Lafayette’s credit manager was appointed to serve on the creditors’ committee during the Debtor’s Chapter 11 case.

In September 1980, the Debtor’s case was converted to a liquidation proceeding under Chapter 7. A Trustee was appointed and notice was sent to all scheduled creditors (including Lafayette) advising that to participate in dividends they were required to file a proof of claim with the bankruptcy court on or before May 6, 1981. Lafayette did not file a formal proof…