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IN RE VERCO INDUSTRIES

No. 81-5298.

704 F.2d 1134 (1983)

In re VERCO INDUSTRIES, a California corporation, Debtor. VERCO INDUSTRIES, a California corporation, Debtor-in-possession, Plaintiff-Appellee, v. SPARTAN PLASTICS, a Partnership, Ernie J. Beigel, a General Partner, and Cecil Sills, a General Partner, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided April 27, 1983.

Attorney(s) appearing for the Case

George F. Hemingway, Marshall, Bratter, Greene, Allison & Tucker, Los Angeles, Cal., for defendants-appellants.

Robert A. Greenfield, Alan Pedlar, Stutman, Treister & Glatt, Los Angeles, Cal., for plaintiff-appellee.

Before ALARCON, POOLE, and BOOCHEVER, Circuit Judges.

BOOCHEVER, Circuit Judge.

This appeal from the Bankruptcy Appellate Panel, 10 B.R. 347, presents a novel issue as to whether a debtor-in-possession which invalidated a sale for failure to comply with bulk transfer laws and retained the sale property for the benefit of the estate's creditors, may recover the balance owed on the sale free from the buyer's claim of set-off. Because the buyer is entitled to a set-off we reverse in part...

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