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IN RE SMITH

Bankruptcy Nos. 282-01976-D-11, 282-05188-D-11, Motion No. BWG-1.

52 B.R. 792 (1985)

In re Thomas Nelson SMITH, aka Thomas N. Smith, dba: Sierra Travel Service, dba: Underground Video Arcade, dba: LD & N Service Corp., fdba: Sierra Truck & Auto, and Randi Denice Smith, aka Randi Smith, dba: Sierra Travel Service, dba: LD & N Service Corp., fdba: Sierra Truck & Auto, Debtors. In re LD & N SERVICE CORPORATION, dba: Chick Inn, Debtors.

United States Bankruptcy Court, E.D. California.

September 5, 1985.

Attorney(s) appearing for the Case

Gregg A. Eichler, Sacramento, Cal., Trustee in pro per.

Melvyn J. Coben, Sacramento, Cal., for Trustee.

Chris Scott Graham, Bolling, Walter & Gawthrop, Sacramento, Cal., for Western Sur. Co.

MEMORANDUM OPINION AND DECISION

LOREN S. DAHL, Bankruptcy Judge.

FACTS

Thomas N. and Randi D. Smith owned and operated a travel agency known as Sierra Travel Service with locations in Alturas, Susanville, and Truckee, California. The Smiths were signatories to a passenger sales agency agreement (agency agreement) with the Air Traffic Conference of America (ATC). The agency agreement governed the sale of traffic documents for

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