MATTER OF EDC HOLDING CO.

No. 81-2711.

676 F.2d 945 (1982)

In the Matter of EDC HOLDING COMPANY, et al., Debtors. Appeal of OFFICIAL CREDITORS' COMMITTEE OF WSC SALES COMPANY.

United States Court of Appeals, Seventh Circuit.

Decided May 11, 1982.


Attorney(s) appearing for the Case

Howard L. Adelman, Schwartz, Cooper, Kolb & Gaynor, Chicago, Ill., for official creditors.

Henry L. Mason, III, Sidley & Austin, Chicago, Ill., for debtors.

Before WOOD, CUDAHY and POSNER, Circuit Judges.


POSNER, Circuit Judge.

Section 364 of the Bankruptcy Code empowers the bankruptcy judge to authorize the bankrupt to borrow money and give the lender priority over certain other creditors. Subsequent reversal, by the district court or the court of appeals, of the grant of priority does not affect the validity of the priority if it was granted "to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal," unless...

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