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MATTER OF TILCO, INC.

No. 76-1274.

558 F.2d 1369 (1977)

In the Matter of TILCO, INC., and its wholly owned subsidiaries, Leben Oil Corporation, Leben Drilling, Inc., Natural Resources Fund, Inc., Interscience Capital Management Corporation, Natural Financial Corporation, Custer City Mining Corporation, Drillers-Producers Pipe & Supply Company, Inc., Leben Lab Inc., Ruex, Inc., and Vamp Sales, Inc., Debtors. Howard J. CAREY, Jr., Trustee, Appellant, v. MOBIL OIL CORPORATION, Anadarko Production Company, et al., Appellees.

United States Court of Appeals, Tenth Circuit.

Decided June 23, 1977.

Rehearing Denied August 30, 1977.

Attorney(s) appearing for the Case

Paul M. Buchanan, Wichita, Kan. (Curfman, Brainerd, Harris, Bell, Weigand & Depew, Wichita, Kan., with him on brief, of counsel), for appellant.

Edward F. Arn and Robert J. O'Conner, Wichita, Kan. (Richard Jones, David C. Adams, Wichita, Kan., Robert W. Reed, St. Louis, Mo., C. C. Linley, Liberal, Kan., Patrick J. McCarthy and Robert J. Hammer, Omaha, Neb., with them on brief), for appellees.

Frederic Dorwart, Tulsa, Okl., for debtors.

Before LEWIS, Chief Judge, and BREITENSTEIN and DOYLE, Circuit Judges.

BREITENSTEIN, Circuit Judge.

In this Chapter X reorganization proceeding the Trustee in bankruptcy sought to reject executory contracts for the sale of natural gas by a subsidiary of the debtor to the appellees, Mobil Oil Corporation, et al. The district court denied the application to reject and the Trustee has appealed. We reverse.

Tilco, Inc., filed a petition in the United States District Court for the District of Kansas for reorganization under Chapter...

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