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IN RE LAKESIDE COMMUNITY HOSP., INC.

Bankruptcy No. 91 B 07290.

139 B.R. 886 (1992)

In re LAKESIDE COMMUNITY HOSPITAL, INC., Debtor.

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

April 28, 1992.

Attorney(s) appearing for the Case

James Newbold, Asst. Ill. Atty. Gen., Chicago, Ill., for Illinois Dept. of Revenue.

Michael Prousis, Asst. Ill. Atty. Gen., Chicago, Ill., for Illinois Dept. of Employment Sec.

Robert A. Carrane, Chicago, Ill., for debtor.

Dennas H. Heffner, Dept. of Justice, Chicago, Ill., for U.S. Trustee.

Patrick T. Sheehan, Office of the Chief Counsel, I.R.S., Chicago, Ill., Mark E. Leipold, Robins, Kaplan, Miller & Ciresi, Elenie K. Huszagh, Offices of Leon Zelechowski, Ltd., Chicago, Ill., for unsecured creditors committee.

MEMORANDUM OPINION

RONALD S. BARLIANT, Bankruptcy Judge.

The Illinois Department of Revenue and the Illinois Department of Employment Security (collectively, IDR/IDES) moved to modify the automatic stay so they can setoff their claims against the Debtor (the former operator of the hospital) against amounts due the Debtor from the Illinois Department of Public Aid (IDPA) for Medicaid reimbursements. The motion will be denied because the debts are not mutual...

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