United States Bankruptcy Court, D. Idaho December 31, 2012, Bankruptcy No. 11-41261-JDP; Adversary Nos. 11-8105-JDP, 11-8106-JDP (Old Cutters, Inc. v. City of Hailey (In re Old Cutters, Inc.))

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

Introduction

Plaintiffs, chapter 111 debtor Old Cutters, Inc. (“Old Cutters”), and its principal *134creditor, Mountain West Bank (“MWB”), commenced these adversary proceedings against Defendant City of Hailey (“Hai-ley”) to determine the status and extent of Hailey’s claims against Old Cutters.