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IN RE MILL INDUSTRIES, INC.

No. 79-1613. Summary Calendar.

606 F.2d 594 (1979)

In re MILL INDUSTRIES, INC., a/k/a Mill Engineers, Mill Industaire & Air Pack, Debtor. Robert ROBERTS, III and Jerald L. Perlman, Plaintiffs-Appellants, v. NATIONAL BANK OF COMMERCE and John A. McDorman, Trustee, Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

November 15, 1979.

Attorney(s) appearing for the Case

John R. Gardner, Shreveport, La., for plaintiffs-appellants.

J. Van Oliver, Dallas, Tex., for Nat. Bank of Commerce.

Jack Balzersen, Dallas, Tex., for John A. McDorman, trustee.

Before CLARK, GEE and HILL, Circuit Judges.

JAMES C. HILL, Circuit Judge:

This appeal concerns the priority in distribution of the estate of Mill Industries, Inc. [hereinafter the "debtor"], which was adjudicated a bankrupt and ordered liquidated in a Chapter X reorganization proceeding. See 11 U.S.C. §§ 501-676 (1976). Prior to the initiation of the current proceedings, National Bank of Commerce, respondent, had made secured loans to the debtor in an amount in excess of $1,200,000 [hereinafter...

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