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IN RE THC FINANCIAL CORP.

No. 80-4386.

679 F.2d 784 (1982)

In re THC FINANCIAL CORP., Debtor. FALCON CAPITAL CORPORATION SHAREHOLDERS, Plaintiffs-Appellants, v. J. Carl OSBORNE, Trustee in Reorganization for THC Financial Corp., Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided June 14, 1982.

Attorney(s) appearing for the Case

Jayson Burton Lumish, Rifkind & Sterling, Inc., Beverly Hills, Cal., for plaintiffs-appellants.

James J. Feder, Beverly Hills, Cal., for defendant-appellee.

Before BROWNING, SKOPIL, and NORRIS, Circuit Judges.

NORRIS, Circuit Judge:

Appellants, claimants in the reorganization proceedings of THC Financial Corporation (THCF), seek parity with general unsecured creditors of THCF. The district court, sitting as a reorganization court under the former Bankruptcy Act (11 U.S.C. §§ 501-676 (1976) (repealed 1978)), granted summary judgment for THCF's Trustee in Reorganization, subordinating appellants' claim on the ground that it is equitably inferior to the claims of...

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