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IN RE A.J. BAYLESS MARKETS, INC.

Bankruptcy No. 4-88-1515 PHX RGM.

108 B.R. 721 (1989)

In re A.J. BAYLESS MARKETS, INC., Debtor. CITY OF PHOENIX, Plaintiff, v. A.J. BAYLESS MARKETS, INC., Defendant.

United States Bankruptcy Court, D. Arizona.

November 20, 1989.

Attorney(s) appearing for the Case

James H. Hays, Office of the City Atty. and Roderick G. McDougall, City Atty., Phoenix, Ariz., for City of Phoenix.

James J. Belanger, Lewis & Roca, Phoenix, Ariz., for debtor.

Sally S. Neely, Sidley & Austin, Los Angeles, Cal., for Citicorp North America and Citibank N.A.

Michael W. Carmel, Phoenix, Ariz., for unsecured creditors committee.

Virginia O'Malley, Phoenix, Ariz., for Citibank.

AMENDED MEMORANDUM OF DECISION

LESLIE TCHAIKOVSKY, Bankruptcy Judge.

The City of Phoenix, Arizona (the "City") seeks payment of $20,791.78 (the "Sequestered Funds") in proceeds from the sale of Debtor's liquor licenses (the "Liquor Licenses") in satisfaction of pre-petition sales tax (the "sales tax debt"). For the reasons set forth below, the Court finds for the City and orders the Debtor to turn over the Sequestered Funds to the City.

SUMMARY...

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