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IN RE VERCO INDUSTRIES

BAP No. CC-81-1241-VGH, Bankruptcy No. SA 80-01923-PE, Adv. No. 80-0845.

27 B.R. 615 (1982)

In re VERCO INDUSTRIES, a California corporation, Debtor. VERCO INDUSTRIES, a California corporation, Appellant, v. UNITED STATES of America, Appellee.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided December 20, 1982.

Attorney(s) appearing for the Case

Robert A. Greenfield, Jeffrey C. Krause, Stutman, Treister & Glatt, Los Angeles, Cal., for appellant.

Kenneth Oestreicher, Dept. of Justice, Commercial Litigation Branch, Washington, D.C., for appellee.

Before VOLINN, GEORGE and HUGHES, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

I.

INTRODUCTORY

On July 23, 1980, Verco Industries ("Verco") filed a petition for reorganization under Chapter 11 of the Bankruptcy Reform Act of 1978, 11 U.S.C. §§ 1101, et seq. (hereinafter the "Code"). The United States filed proofs of claims against the Verco bankruptcy estate for breach of various contracts between it and Verco for the manufacture of equipment for agencies of the United...

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