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IN RE FOAM SYSTEMS CO.

BAP No. CC-87-1935 VMoJ, Bankruptcy No. SB 86-02511 DN, Adv. No. SB 87-0301 DN.

92 B.R. 406 (1988)

In re FOAM SYSTEMS COMPANY, Debtor. INSURANCE COMPANY OF THE WEST, a corporation, Appellant, v. William J. SIMON, Trustee, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided August 31, 1988.

Attorney(s) appearing for the Case

Bruce E. Grubaugh, Orange, Cal., for appellant.

James L. Huffman, Santa Ana, Cal., for appellee.

Before VOLINN, MOOREMAN and JONES, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

FACTS

A.

In 1983, Ryan Marine Corporation and debtor Foam Systems Company entered into a contract whereby Foam Systems was to supply polyurethane foam insulating material for use in the construction of ships for the U.S. Navy. The material was to be delivered over a five-year period from 1983 to 1988. In accordance with the contract, Ryan Marine paid Foam Systems $255,000, the entire contract price, in...

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