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MATTER OF FLAGSTAFF FOODSERVICE CORP.

Bankruptcy Nos. 81-B-11430 to No. 81-B-11436, Adv. No. 81-5485.

14 B.R. 462 (1981)

In the Matter of FLAGSTAFF FOODSERVICE CORPORATION, et al., Debtors. McCAIN FOODS, INC., Plaintiff, v. FLAGSTAFF FOODSERVICE COMPANY NEW ENGLAND, INC., Defendant.

United States Bankruptcy Court, S.D. New York.

October 5, 1981.

Attorney(s) appearing for the Case

Levin & Weintraub, New York City, for debtor; Elias Mann, New York City, of counsel.

Dahan, Appel & Nowick, New York City, for McCain Foods, Inc.; Edward R. Curtin, New York City, of counsel.

Angel & Frankel, New York City, for the Creditors Committee; Joshua J. Angel, New York City, of counsel.

OPINION

ROY BABITT, Bankruptcy Judge:

This dispute between Flagstaff Foodservice Company New England, Inc. (Flagstaff or debtor), a Chapter 11 debtor and McCain Foods, Inc. (McCain) centers on the reach of Section 546(c) of the 1978 Bankruptcy Code, 11 U.S.C. (1976 ed. Supp. III) § 546(c), involving the rights Congress gave in that section to a seller of goods on credit to an insolvent purchaser.

Flagstaff, a distributor of food to institutional...

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