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IN RE EASTERN FREIGHT WAYS, INC.

Bankruptcy No. 76-B-981.

9 B.R. 653 (1981)

In re EASTERN FREIGHT WAYS, INC., Bankrupt. Sidney B. GLUCK, Trustee in Bankruptcy of Eastern Freight Ways, Inc., Plaintiff, v. SEABOARD SURETY COMPANY, Manufacturers Hanover Trust Company, individually and as agent for other institutional lenders, International Harvester Credit Corporation, Fruehauf Corporation, the Chase Manhattan Bank, National Association, and Thomas J. Cahill, Trustee in Bankruptcy of Associated Transport, Inc., Defendants.

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

February 19, 1981.

Attorney(s) appearing for the Case

Booth, Lipton & Lipton, New York City, for trustee of Eastern Freight Ways, Inc., by Edgar H. Booth and Michael Kleinerman, New York City, of counsel.

Anderson, Russell, Kill & Olick, New York City, for trustee of Associated Transport, Inc., by Stephen Pesner, New York City, of counsel.

Milbank, Tweed, Hadley & McCloy, New York City, for Chase Manhattan Bank by Edward Handelman, and Russell Brooks, New York City, of counsel.

Morgan, Lewis & Bockius, New York City, for Seaboard Surety Co. by James W. Harbison, Jr., and Thomas Stritter, New York City, of counsel.

Wachtell, Lipton, Rosen & Katz, New York City, for Manufacturers Hanover Trust Co. by Theodore Gewertz, New York City, of counsel.

OPINION

ROY BABBITT, Bankruptcy Judge:

I. THE LEGAL SETTING

or

HOW LAWYERS THREATEN TO DEPLETE OUR FORESTS

The dispute which is the subject of this decision involves directly two of the named defendants, and, depending on the outcome of that dispute, other defendants and the plaintiff, the trustee in bankruptcy of Eastern Freight Ways, Inc. (Eastern).

Both Eastern and its affiliate...

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