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IN RE OZARK RESTAURANT EQUIPMENT CO., INC.

No. 87-2309.

850 F.2d 342 (1988)

In re OZARK RESTAURANT EQUIPMENT CO. INC. Jill R. JACOWAY, Trustee, Appellee, v. Bruce ANDERSON, Elmer Dale Yancey, Kenneth Eads, Robert Whiteley, and Anderson Cajun's Wharf, Appellants. Jill R. JACOWAY, Trustee, Appellee, v. ANDERSON CAJUN'S WHARF, Appellant. Jill R. JACOWAY, Trustee, Appellee, v. Hayden McILROY of McIlroy Bank and Trust, Ed Yancey, Bruce Anderson, Kenneth Eads, Appellants.

United States Court of Appeals, Eighth Circuit.

Decided June 17, 1988.

Attorney(s) appearing for the Case

Raymond C. Smith, Fayetteville, Ark., for appellants.

Robert L. Gross, Fayetteville, Ark., for appellee.

Before McMILLIAN, Circuit Judge, FLOYD R. GIBSON, Senior Circuit Judge, and BOWMAN, Circuit Judge.

FLOYD R. GIBSON, Senior Circuit Judge.

This is an appeal from the judgment of the United States District Court for the Western District of Arkansas affirming the bankruptcy court in this Chapter 7 Bankruptcy case. For the reasons stated below we affirm in part and reverse and remand in part.

I. BACKGROUND

In 1980 Bruce Anderson and Elmer Dale Yancey bought Ozark Restaurant Equipment Company. Each owned fifty percent of the stock and held positions...

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