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IN RE TACOMA BOATBUILDING CO.

Bankruptcy No. 85 B 11535 (BRL), Adv. No. 85-6704A(BRL).

81 B.R. 248 (1987)

In re TACOMA BOATBUILDING COMPANY, Debtor. CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO, individually and as agent for the Bank of California, N.A.; and Canadian Imperial Bank of Commerce; the Bank of California, N.A.; and Canadian Imperial Bank of Commerce, Plaintiffs, v. TACOMA BOATBUILDING COMPANY, debtor, At-Sea Incineration; the United States of America, represented by the Secretary of Transportation by and through the Maritime Administration; and the National Bank of Washington, Indenture Trustee, Defendants.

United States Bankruptcy Court, S.D. New York.

December 31, 1987.

Attorney(s) appearing for the Case

Fried, Frank, Harris, Shriver & Jacobson by Matthew Gluck, New York City, for plaintiffs.

Dept. of Justice — Civ. Div. by Diane L. Donley, Asst. Atty. Gen., Washington, D.C., for U.S. representing the Secretary of Transp.

Levin & Weintraub & Crames by Lester Kirshenbaum, Wilkie, Farr & Gallagher by Gerald Kerner, New York City, for debtor.

D'Amato & Lynch by Robert Meshel, New York City, for third-party defendant Hill, Betts & Nash.

Hart & Hume by Lewis Stockman, New York City, for third-party defendant Indus. Indem. Co.

Booth, Marcus & Pierce by Marc E. Richards, New York City, for Official Creditors' Committee.

DECISION AND ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

BURTON R. LIFLAND, Chief Judge.

I. INTRODUCTION

On September 23, 1985, Tacoma Boatbuilding Company ("Tacoma" or "debtor") a Washington based manufacturer of high technology, high performance vessels, filed a petition for reorganization under Chapter 11 of Title 11 of the United States Code (the "Code"). In accordance with §§ 1107 and 1108 of the Code, Tacoma continued...

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