Court Reiterates That Debtor’s Setoff Rights Trump Those of Claimant

Court Reiterates That Debtor’s Setoff Rights Trump Those of Claimant

In the bankruptcy case of ADI Liquidation, Inc. (f/k/a AWI Delaware, Inc.), Bankr. No. 14-12092 (KJC), the Court considered a motion by creditor Western Family Foods, Inc. (“WFFI”) for relief from the automatic stay to exercise its setoff rights against its general unsecured claim against ADI Liquidation, Inc., et al. (the “Debtors”).