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FELNER v. MANGEL STORES

69 A.D.2d 36 (1979)

Richard Felner et al., Respondents, v. Mangel Stores Corporation, Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

July 10, 1979

Attorney(s) appearing for the Case

Joseph DiBenedetto of counsel (Andrea Catania with him on the briefs; Cole & Deitz, attorneys), for appellant.

Harold B. Tevelowitz of counsel (Robert Polstein with him on the brief; Oran, Elsen, Polstein & Naftalis, attorneys), for respondents.

BIRNS and FEIN, JJ., concur with LANE, J.; KUPFERMAN, J. P., and SANDLER, J., dissent in an opinion by SANDLER, J.

LANE, J.

Richard Felner and Richard Echikson were the principal officers of Fabric Tree, Inc., a retail clothing chain. Fabric Tree had suffered reverses, and a petition for arrangement of its debts was filed in August, 1975. Mangel Stores Corporation had agreed to participate in a plan to put Fabric Tree's business in order, which included a $600,000 loan to Fabric Tree. Actually, there were three agreements...

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