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IN RE ALLIANCE PROPERTIES, INC.

Bankruptcy No. 87-00571-LM11.

104 B.R. 306 (1989)

In re ALLIANCE PROPERTIES, INC., a California corporation, Debtor.

United States Bankruptcy Court, S.D. California.

August 23, 1989.

Attorney(s) appearing for the Case

Janet Krems, Montgromer, Gascou, Gemmill & Thornton, Los Angeles, Cal., for plaintiff, INA.

Darvy Mack Cohan, La Jolla, Cal., for debtor.

Ted Graham, Brobeck, Phleger and Harrison, Mikel Bistrow, Luce, Forward, Hamilton & Scripps, San Diego, Cal., for Torrey Pines Bank.

Charles G. Crosse, IV, Michael, Best & Friedrich, Milwaukee, Wis., for John Junge.

David Buchbinder, San Diego, Cal., for Seligman and Coleman.

James P. Hill, Hill & Baskin, San Diego, Cal., for Patrick J. Timmons.

MEMORANDUM DECISION

LOUISE DeCARL MALUGEN, Bankruptcy Judge.

I. INTRODUCTION

This case is essentially an ownership dispute between Torrey Pines Bank ("TPB"), a secured creditor, Alliance Properties, Inc. ("API"), the debtor-in-possession, and Insurance Company of North America ("INA"), a surety for the debtor on several bonded federal government contracts. The asset in question is a fund of $375,000 held in a blocked account pursuant to an order...

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