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UNIVERSAL BONDING v. GITTENS & SPRINKLE ENT.

No. 91-5545.

960 F.2d 366 (1992)

UNIVERSAL BONDING INSURANCE CO., North River Insurance Co., Westchester Fire Insurance Co., Appellants, v. GITTENS AND SPRINKLE ENTERPRISES, INC., Appellee, Gittens and Sprinkle Enterprises, Inc., Debtor, US Trustee, Trustee, Universal Bonding Insurance Company, North River Insurance Company and Westchester Fire Insurance Company, Appellants.

United States Court of Appeals, Third Circuit.

Decided April 2, 1992.

Attorney(s) appearing for the Case

Robert W. McCann, Richard J. Allen, Jr. (argued), Klotz & McCann, Hawthorne, N.J., for appellants Universal Bonding Ins. Co., North River Ins. Co. and Westchester Fire Ins. Co.

Eric J. Clayman (argued), Jenkins & Jenkins, Haddon Heights, N.J., for appellee Gittens and Sprinkle Enterprises, Inc.

Before: COWEN, NYGAARD and GARTH, Circuit Judges.

OPINION OF THE COURT

GARTH, Circuit Judge:

Gittens and Sprinkle Enterprises, Inc. ("Gittens"), a contractor, filed for bankruptcy protection and attempted, as debtor in possession, to collect outstanding contract balances due from state, municipal and federal agencies, for the purposes of reorganizing and using such funds as capital in new ventures. Gittens' surety, Universal Bonding Insurance Company ("Universal"), objected and argued that these balances...

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