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IN RE LUDFORD FRUIT PRODUCTS, INC.

Bankruptcy No. LA 87-00994 VZ, Adv. No. LA 88-01534 VZ.

99 B.R. 18 (1989)

In re LUDFORD FRUIT PRODUCTS, INC., a California corporation, Debtor. Dennis McGOLDRICK, Chapter 7 Trustee, Plaintiff-Counterdefendant, v. JUICE FARMS, INC., a Florida Corporation, Defendant-Counterplaintiff.

United States Bankruptcy Court, C.D. California.

April 13, 1989.

Attorney(s) appearing for the Case

Gregory S. Abrams, Tarzana, Cal., for plaintiff/counterdefendant.

John E. McDermott, McDermott, Will & Emery, Los Angeles, Cal., for defendant/counterplaintiff.

MEMORANDUM OF DECISION

VINCENT P. ZURZOLO, Bankruptcy Judge.

In this adversary proceeding, the trustee seeks avoidance and recovery of payments received by an undersecured creditor during the ninety days preceding the filing of the debtor's bankruptcy petition. The following issues arise:

(1) Does the earmarking doctrine apply? (2) Can preferential transfers be made to a partially secured creditor? (3) Does the defendant have...

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