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U.S. v. CONTINENTAL ILLINOIS NAT. BANK AND TRUST

No. 1047, Docket 89-5004.

889 F.2d 1248 (1989)

The UNITED STATES of America, representing the Secretary of Transportation, for and on Behalf of the MARITIME ADMINISTRATION, and representing At-Sea Incineration, Inc., Appellant, v. CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO (individually and as agent for The Bank of California, N.A. and Canadian Imperial Bank of Commerce), the Bank of California, N.A., and Canadian Imperial Bank of Commerce, Appellees.

United States Court of Appeals, Second Circuit.

Decided November 16, 1989.

Attorney(s) appearing for the Case

Jeremy R. Paul, Atty., Civ. Div., U.S. Dept. of Justice, Washington, D.C. (John R. Bolton, Asst. Atty. Gen., Leonard Schaitman, Atty., Civ. Div., Dept. of Justice, Washington, D.C., Benito Romano, U.S. Atty. for S.D.N.Y., New York City, of counsel), for appellant.

Matthew Gluck, New York City (Herbert P. Minkel, Jr., Brent A. Friedman, Fried, Frank, Harris, Shriver and Jacobson, New York City, of counsel), for appellees.

Before LUMBARD, ALTIMARI and MAHONEY, Circuit Judges.

MAHONEY, Circuit Judge:

This adversary proceeding was commenced in the United States Bankruptcy Court for the Southern District of New York on November 1, 1985, shortly after Tacoma Boatbuilding Company ("Tacoma"), a Washington based manufacturer of high technology, high performance vessels, filed in the same court a petition for reorganization under chapter 11 of title 11 of the United States Code. In connection with approximately $32 million in loans which they...

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