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IN RE CALIFORNIA TRADE TECHNICAL SCHOOLS, INC.

No. 89-55611.

923 F.2d 641 (1991)

In re CALIFORNIA TRADE TECHNICAL SCHOOLS, INC., dba California Trade Technical College, Debtor. Arnold L. KUPETZ, Trustee for California Trade Technical Schools, Inc., aka California Trade Technical College, Plaintiff-Appellee, v. UNITED STATES of America, on Behalf of the UNITED STATES DEPARTMENT OF EDUCATION, Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Memorandum September 25, 1990.

Order and Opinion January 10, 1991.

Attorney(s) appearing for the Case

Frederick M. Brosio, Jr., and Kathryn M. Ritchie, Asst. U.S. Attys., Fred J. Marinucci, Office of Gen. Counsel, U.S. Dept. of Educ., Los Angeles, Cal., for defendant-appellant.

Howard M. Ehrenberg, Sulmeyer, Kupetz, Baumann & Rothman, Los Angeles, Cal., for plaintiff-appellee.

Before REINHARDT and HALL, Circuit Judges, and RE, Chief Judge.

REINHARDT, Circuit Judge:

California Trade Technical Schools, Inc. ("CTTS") filed a voluntary petition for reorganization under chapter 11 of the Bankruptcy Code on July 25, 1983. The case was converted to a chapter 7 liquidation proceeding on June 19, 1984. Shortly thereafter, Arnold Kupetz was appointed trustee of the bankruptcy estate. On August 21, 1986, Kupetz filed a complaint to recover funds transferred to the government on May 20, 1983 as an avoidable preference...

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