Court of Appeals for the First Circuit May 21, 1985, 83-5838 (Bankr. L. Rep. P 70,553 First National Bank of Louisville v. Hurricane Elkhorn Coal Corporation II Logan & Kanawha Coal Company, Inc.)

MERRITT, Circuit Judge.

This bankruptcy case arises from the set-off by an agent of approximately $84,000 in order to recoup mistaken overpayments paid to the creditor of its principal, a Chapter 11 debtor. The setoff occurred in the context of a somewhat complex financing arrangement involving the principal, its agent, and the creditor bank.

The principal, coal producer Hurricane Elkhorn Coal Co.