Thomas Antoine and James Matthews were employees of First Street, which lent money to residential property buyers who did not generally qualify for bank or government-sponsored lending programs. In July 1998, jointly with their respective wives, they purchased shares of common stock in First Street in response to a solicitation made to First Street employees by the management of First Street. Mr. and Mrs. Antoine purchased 0.1718 share of common stock for a price of $125,000, while the Matthews purchased 0.0687 share of common stock for a price of $50,000. In December 1998, First Street and Michael Moecker & Associates, Inc. executed an assignment for the benefit of creditors.

First Street was thereafter declared an insolvent corporation, and on December 15, 1998, Moecker filed a petition in the circuit court commencing an ABC proceeding under Florida statutes. The Antoines filed a claim in the amount of

$125,000 expressly representing that the basis of the claim was as shareholders.

Moecker objected to the claims, asserting that because the appellees made equity contributions to First Street, not loans, they were not creditors.

CASE QUESTIONS

1. Are the Antoines creditors? Explain.

2. What is Moecker’s objection to the claim?