Entertainment Specialties, Inc. v. Thompson (In re Entertainment Specialties, Inc.)

MEMORANDUM OPINION

On November 25, 1986, a hearing was held on debtor’s motion for summary judgment (the “Motion”). Previously, debtor had filed a complaint to compel turnover of property specifying that the net proceeds from a motocross event held at the Los Angeles Memorial Coliseum were property of the estate and recoverable under Section 542 of the Bankruptcy Code. Mickey Thompson and Thompson Entertainment Corp. (collectively “Thompson”) served a writ of execution on the Los Angeles Memorial Coliseum Commission (the “Commission”) on May 19,1986 and June 24,1986 to levy on the net proceeds. In its complaint debtor contends that the June 24 levy is voidable as a preferential transfer under Section 547 of the Bankruptcy Code. At the hearing on the Motion, I requested further briefing on (1) the appropriate method for levying and (2) the possibility of a 100% distribution to creditors which would defeat the preference allegation. Subsequent to the hearing, debtor’s counsel stipulated that a 100% distribution to creditors was probable. Accordingly, debt- or withdrew its preference argument and in lieu thereof argued that the levies were invalid because Thompson failed to comply…