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IN THE MATTER OF NEWPORT HARBOR ASSOC.

No. 78-1180.

589 F.2d 20 (1978)

In the Matter of NEWPORT HARBOR ASSOCIATES, d/b/a Newport Harbor Treadway, Inc., etc. and James W. Kirby, etc., Debtors, Appellants.

United States Court of Appeals, First Circuit.

Decided December 6, 1978.

Attorney(s) appearing for the Case

Thomas C. Mullaney, Jr., Providence, R. I., for appellants.

Robert F. Flanders, Jr., Providence, R. I., with whom Edward J. Bertozzi, Jr., Thomas E. Pitts, Jr., and Edwards & Angell, Providence, R. I., were on brief, for appellee.

Before COFFIN, Chief Judge, ALDRICH and CAMPBELL, Circuit Judges.

ALDRICH, Senior Circuit Judge.

In January, 1973 Debtors (Newport Harbor Associates, a limited partnership, and James W. Kirby, the sole general partner) filed a Chapter XI proceeding in the bankruptcy court to replace a state court receivership of their Newport, Rhode Island hotel. The hotel was being operated at a loss under a management and franchise agreement with Treadway Inns Corporation, and was sought after by a wholly-owned subsidiary of Treadway, as third...

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