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IN RE VIRTUAL NETWORK SERVICES CORP.

No. 88 C 5404.

98 B.R. 343 (1989)

In re VIRTUAL NETWORK SERVICES CORP., Debtor. VIRTUAL NETWORK SERVICES CORP., Appellant, v. UNITED STATES of America, Appellee.

United States District Court, N.D. Illinois, E.D.

April 28, 1989.

Attorney(s) appearing for the Case

Steven B. Towbin, Steven T. Bobo, Scott N. Schreiber, Towbin & Zazove, Ltd., Chicago, Ill., for appellant.

Debra L. Stefanik, Trial Lawyer, U.S. Dept. of Justice, Washington, D.C., for appellee.

ZAGEL, District Judge.

Virtual Network Services Corp. (VNS) operated a long-distance telephone services company during 1985 and 1986. It fell on hard times, however; and in September of 1986 VNS sought relief under Chapter 11 of the Bankruptcy Code. VNS became a debtor-in-possession, operating its business (and administering its estate) for the benefit of its creditors. See 11 U.S.C. secs. 1107, 1108. In December of 1986, VNS sold all of its operating assets, and...

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