Over a period of several years, Barclays American/Business Credit, Inc. (Barclays), as successor in interest to Aetna Business Credit, Inc., loaned substantial sums of money to A&C Johnson Co. (A&C). The loans were calculated as a percentage of inventory, which ranged from $1.3 to $1.7 million, and were secured by A&Cs accounts receivable. Proceeds from the accounts were to be deposited in a special "collateral" account maintained by A&C. Long, president and majority stockholder in A&C, was also guarantor on the loans. A&C and Long both filed for bankruptcy and Barclays now seeks to prevent discharge of debts resulting from Longs guaranty by alleging (1) misconduct in obtaining some $90,000 worth of additional loans by inflating inventory valuation and (2) misconduct in diverting $139,120.97 worth of collateral (i.e. accounts receivable proceeds) to a new corporate account. Long used the diverted proceeds for attorneys fees and other expenditures to keep A&C functioning as an active business, an effort which quickly failed when Barclays refused further credit while A&C was in Chapter 11 reorganization.