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IN RE MILTON POULOS, INC.

Bankruptcy Nos. LA 87-21451-NCA, M7-09606-NCA.

94 B.R. 648 (1988)

In re MILTON POULOS, INC., Debtor. C & E ENTERPRISES, INC., dba Koyama Farms, a California corporation; Pleasant Valley Vegetable Cooperative, a California corporation; Teixeira Farms, Inc., a California corporation; and Maulhardt-Stiles Co., a partnership, Plaintiffs, v. MILTON POULOS, INC., Defendant.

United States Bankruptcy Court, C.D. California.

September 30, 1988.

Attorney(s) appearing for the Case

Lewis P. Janowsky, Rynn & Janowsky, and Marion I. Quesenbery, Dressler & Quesenbery, Newport Beach, Cal., for plaintiffs.

Creighton A. Stephens, Agoura Hills, Cal., for debtor/defendant.

MEMORANDUM OF DECISION

CALVIN K. ASHLAND, Bankruptcy Judge.

Creditors seek relief from the automatic stay and release of property not belonging to the estate based on a trust established by the Perishable Agricultural Commodities Act ("PACA"). Creditors claim the PACA trust assets are not part of the bankruptcy estate and are subject to distribution to trust beneficiaries outside the distribution contemplated in bankruptcy. Creditors also seek prejudgment...

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