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IN RE KENTUCKY LUMBER CO.

No. 86-6153.

860 F.2d 674 (1988)

In re KENTUCKY LUMBER COMPANY, Debtor. Timothy THOMPSON; Linda Thompson; Kenny Williams; Weyerhauser Company; Champion Building Products; and Simpson Building Supply, Plaintiffs-Appellees, v. KENTUCKY LUMBER COMPANY, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided November 2, 1988.

Attorney(s) appearing for the Case

Lawrence S. Profumo (argued), Louisville, Ky., for defendant-appellant.

Joseph S. Elder, II (argued), Louisville, Ky., plaintiffs-appellees.

Before ENGEL, Chief Judge, RYAN, Circuit Judge, and PECK, Senior Circuit Judge.

ENGEL, Chief Judge.

This is in the words of Justice Scalia, one of those "admittedly rare" cases where the debtor in a bankruptcy proceeding may ultimately prove to be solvent.1 The question before us is whether the unsecured creditors in such circumstances are entitled to postpetition interest as a matter of law. The unique circumstance in this case is that the debtor, although clearly perceived as insolvent on the date of confirmation...

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