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MATTER OF BALDWIN-UNITED CORP.

Civ. A. No. C-1-84-345.

43 B.R. 443 (1984)

In the Matter of BALDWIN-UNITED CORPORATION, D.H. Baldwin Company, Debtors, Consolidated Appeals of the Unsecured Creditors' Committees of Both Debtors.

United States District Court, S.D. Ohio, W.D.

August 31, 1984.

Attorney(s) appearing for the Case

Paul B. O'Kelly, John Richards Lee, Gregory P. von Schaumburg, U.S.S.E.C., Chicago, Ill., for S.E.C.

Robert J. White, Linda J. Smith, O'Melveny & Myers, Los Angeles, Cal., Don R. Gardner, Genina C. Bowman, Keating, Muething & Klekamp, Cincinnati, Ohio, for debtors-in possession.

Joseph Patchan, Susan B. Collins, Baker & Hostetler, Cleveland, Ohio, Leon S. Forman, Thomas E. Biron, Wexler, Weisman, Forman & Shapiro, Philadelphia, Pa., for Unsecured Creditors' Committees.

OPINION AND ORDER

DAVID S. PORTER, Senior District Judge:

I. Introduction

The issue in these consolidated appeals from four orders of the United States Bankruptcy Court for the Southern District of Ohio boils down to whether or not the bankruptcy court has the discretion to permit a Chapter 11 debtor to advance its present and former non-management directors' funds from the estate with which to pay for their defense, as individual defendants...

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