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IN RE NAUDAIN, INC.

Bankruptcy No. 81-04333G, Adv. No. 82-0669G.

32 B.R. 880 (1983)

In re NAUDAIN, INC., formerly known as Brooks Shoe Manufacturing Company, Inc., et al., Debtors. BROOKS SHOE MANUFACTURING COMPANY, INC., Plaintiff, v. UNITED TELEPHONE COMPANY, Defendant.

United States Bankruptcy Court, E.D. Pennsylvania.

September 21, 1983.

Attorney(s) appearing for the Case

Kathryn R. Heidt, Duane, Morris & Heckscher, Philadelphia, Pa., for debtor/plaintiff, Naudain, Inc., formerly known as Brooks Shoe Manufacturing Company, Inc., et al.

J. Gregg Miller, Barbara H. Sagar, Pepper, Hamilton & Scheetz, Philadelphia, Pa. and Daniel T. Dineen, United Telephone Co. Legal Department, Carlisle, Pa., for defendant, United Telephone Co.

Adelman, Lavine, Krasny, Gold & Levin, Philadelphia, Pa., for the Creditors' Committee.

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

In the case sub judice, the debtor, relying on section 553(a)(3) of the Bankruptcy Code ("the Code"), seeks the return of a deposit, which it delivered to the defendant prior to having filed its petition for reorganization under chapter 11 of the Code, in order to secure payment for future telephone charges. Because the record establishes that the sole purpose of...

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