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MATTER OF F. W. KOENECKE & SONS, INC.

No. 75-1844.

533 F.2d 1020 (1976)

In the Matter of F. W. KOENECKE & SONS, INC., an Illinois Corporation, Bankrupt. DEPARTMENT OF REVENUE OF the STATE OF ILLINOIS, Claimant-Appellant, v. Glenn R. HEYMAN, Trustee-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided April 20, 1976.

Rehearing and Rehearing Denied June 2, 1976.

Attorney(s) appearing for the Case

Herbert Lee Caplan, Morris S. Bromberg, Asst. Attys. Gen., Chicago, Ill., for claimant-appellant.

Louis W. Levit, Glenn R. Heyman, Chicago, Ill., for trustee-appellee.

Before FAIRCHILD, Chief Circuit Judge, and TONE and BAUER, Circuit Judges.

Rehearing and Rehearing En Banc Denied June 2, 1976.

BAUER, Circuit Judge.

Involuntary bankruptcy proceedings were initiated against F. W. Koenecke & Sons, Inc. ("Koenecke") in 1969. Following an adjudication of bankruptcy a receiver/trustee was appointed and a priority tax claim was presented by the State of Illinois in the amount of $1,268,334.60 for unpaid taxes under the Illinois Cigarette Tax Act and Cigarette Use Tax Act for the period of July 1...

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