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IN RE ROYAL YARN DYEING CORP.

Bankruptcy No. 182-11153-16 (CBD), Adv. No. 185-0192.

114 B.R. 852 (1990)

In re ROYAL YARN DYEING CORP., Debtor. PAUL RUTH TRADING CO., Plaintiff, v. ROYAL YARN DYEING CORP. and Vander Dyeing & Finishing Corp., Defendants.

United States Bankruptcy Court, E.D. New York.

May 29, 1990.

Attorney(s) appearing for the Case

Ballon, Stoll & Itzler by Will Levins, New York City, for Paul Ruth Trading Co.

Graubard, Mollen, Horowitz Pomeranz & Shapiro by Ellen Coin, New York City, for Royal Yarn Dyeing Corp. and Vander Dyeing & Finishing Corp.

Hesterberg & Keller by James F. McCoole, Brooklyn, N.Y., for intervenor Estate of Mae Marcus.

Rosenberg, Rosenberg & Koral by Richard Koral, Brooklyn, N.Y., for debtor.

Leopold, Gross, Sommers & Israel, P.C. by Bruce W. Sommers, Brooklyn, N.Y., for Creditors Committee.

DECISION

CONRAD B. DUBERSTEIN, Chief Judge.

Disputes between landlords and tenants are not difficult to find in the bankruptcy court. Landlords are often angered by defaulting tenants who file petitions in bankruptcy either to stay a dispossess proceeding or in the hope of subleasing or assigning valuable properties to other entities at a profit. Nevertheless, the Bankruptcy Code condones such actions regardless of provisions to the contrary in leases in...

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