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IN RE PRIME MOTOR INNS, INC.

Bankruptcy No. 90-16604-BKC-AJC, Adv. No. 90-0504-BKC-AJC-A.

123 B.R. 104 (1990)

In re PRIME MOTOR INNS, INC., et al., Debtors. In re SERVICO, INC., et al., Debtors. PRIME MOTOR INNS, INC., and Prime Management Co., Inc., Plaintiffs, v. FIRST FIDELITY BANK N.A. NEW JERSEY and Manufacturers Hanover Trust Company, Defendants.

United States Bankruptcy Court, S.D. Florida.

October 18, 1990.

Attorney(s) appearing for the Case

William J. Rochelle, III, Courtney Slaten Katzenstein, David Rosenzweig, Fulbright, Jaworski & Reavis McGrath, New York City, for Prime Motor Inns, Inc.

Dennis O'Grady, Riker, Danzig, Scherer & Hyland, Morristown, N.J., David M. Levine, McDermott, Will & Emery, Miami, Fla., for First Fidelity as Indenture Trustee.

Brian Gart, Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, PA, Miami, Fla., for First Fidelity Bank as Letter of Credit Issuer.

Robert Soriano, Carlton, Fields, Ward, Emmanuel, Smith & Cutler, PA, Tampa, Fla., for Mfrs. Hanover Trust Co. as Letter of Credit Issuer.

Holland and Knight, Miami, Fla., Chapman and Cutler, Chicago, Ill., for Smith, Barney Harris Upham and Co., Inc.

MEMORANDUM OPINION AND ORDER GRANTING PRELIMINARY INJUNCTION

A. JAY CRISTOL, Bankruptcy Judge.

I.

Background

A. The Prime Bankruptcy

On September 18, 1990, Prime Motor Inns, Inc. ("Prime") and fifty (50) of its direct and indirect subsidiaries, including Prime Management Co., Inc. ("Prime Management") (collectively, the "Prime Debtors") filed petitions for reorganization relief under chapter 11 of title 11, United States...

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