REINHARDT, Circuit Judge:
California Trade Technical Schools, Inc. ("CTTS") filed a voluntary petition for reorganization under chapter 11 of the Bankruptcy Code on July 25, 1983. The case was converted to a chapter 7 liquidation proceeding on June 19, 1984. Shortly thereafter, Arnold Kupetz was appointed trustee of the bankruptcy estate. On August 21, 1986, Kupetz filed a complaint to recover funds transferred to the government on May 20, 1983 as an avoidable preference...
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