IN RE AMERICAN CONTINENTAL CORP.

No. CIV 89-1231 PHX-RMB, Bankruptcy No. B 89-3117 PHX-RMB, Adv. Nos. 91-2001 to 91-4095.

142 B.R. 894 (1992)

In re AMERICAN CONTINENTAL CORPORATION, an Ohio corporation, Debtors. AMERICAN CONTINENTAL CORPORATION, Plaintiff, v. ALL PREFERENCE DEFENDANTS, Defendants.

United States District Court, D. Arizona.

June 15, 1992.


Attorney(s) appearing for the Case

William S. Rose, American Continental Corp., Phoenix, Ariz., for debtors.

Oscar Acosta, Pasadena, Cal., Jeffrey Altman, Los Angeles, Cal., Robert G. Anderson, Jaburg & Wilk, P.C., Phoenix, Ariz., Mike D. Arnold, Gallatin, Mo., Michael L. Baker, McClure & Baker, Florence, Ky., Lucille Hino Baugham, Los Angeles, Cal., Richard S. Berger, Tuttle & Taylor, A Law Corp., Los Angeles, Cal., David L. Blender, Walleck, Shane, Stanard & Blender, Woodland Hills, Cal., June Adler, Northridge, Cal., Doug Amo, Pivo & Halbreich, Irvine, Cal., Rick Apicella, Law Dept., Shearson Lehman Bros., New York City, Brent Ayscough, Ayscough & Marar Attorneys at Law, Torrance, Cal., Gordon Baldwin, Orange, Cal., E. Michael Bayer, Northridge, Cal., Robert H. Berman, Horwitz & Cutler, Inc., Irvine, Cal.

Barry Blomquist, Blomquist & Espeset, Minneapolis, Minn., Lawrence E. Bookman, Stell, Levine, Bookman & Weiss, Los Angeles, Cal., Richard D. Brady, Costa Mesa, Cal., Mark Branner, Sherman Oaks, Cal., Frank Brophy, Phoenix, Ariz., Lorne J. Brown, Pasadena, Cal., Russell Brown, San Diego, Cal., Paris D. Brunner, Santa Monica, Cal., Douglas L. Callister, Callister & Callister, Glendale, Cal., Lana Borsook, Broad, Schulz, Larsen & Wineberg, Los Angeles, Cal., Jeffrey Brandt, Edwards & Ashton, Glendale, Cal., Eric Bronc, S.K. Friedemann & Associates, Long Beach, Cal., Bruce A. Brown, Goldsmith, Thelin, Schiller & Brown, Aurora, Ill., Richard Brown, Newport Beach, Cal., Ron Brownson, Upland, Cal., Stephen M. Burgin, Latham & Watkins, Los Angeles, Cal., Charles H. Carter, Corona, Cal., Henry Casden, The Casden Co., Beverly Hills, Cal., Robert C. Chandler, Chandler, Stevens & Trone, Riverside, Cal., Stephen B. Clemmer, Cayer, Kilstofte & Craton, Long Beach, Cal., Jerome S. Cohen, Los Angeles, Cal., Knox M. Cologne III, Los Angeles, Cal., Barbara A. Cooper, Bellflower, Cal., Jeff Coyne, Coyne, Milner, Uriarte & Lorch, Pasadena, Cal., James O. Cripps, Hemet, Cal., Clifford Cate, Glendale, Cal., David Chapman, Pasadena, Cal., Michael Coates, Saxon, Dean, Mason, Brewer & Kincannon, Glendora, Cal., H. William Collins, San Diego, Cal., Wayne Condict, First American Trust Co., Santa Ana, Cal., Robert D. Coviello, Santa Ana, Cal., Steve Craycraft, Stewart & Irwin, Indianapolis, Ind., Bart Cromwell, Bower & Weiner, Orange, Cal., Milton Crystal, Syracuse, N.Y., Charles R. Curry, Santa Ana, Cal., Ruth Davey, Tucson, Ariz., David Dealey, Fogel, Dealey & McCall, Santa Monica, Cal., Steve A. Didio, Norcross, Ga., James Doak, Norwalk, Cal., Eugene E. Dunnington, Garden Grove, Cal., Lyn Duval, Bloom, Rodibaugh & Jeglin, Hemet, Cal., Charles Cummings, Los Angeles, Cal., Stephen Z. Cutler, Klein & Cutler, Long Beach, Cal., Joseph Davis, Santa Ana, Cal., Allan J. Demars, Spiegel & Demars, Chicago, Ill., Dean M. Dinner, Schult, Lazarus, French, Zwillinger & Smock, Phoenix, Ariz., Deborah Driggs, Sacks, Tierney, Kasen & Kerrick, Phoenix, Ariz., Kenneth B. Dusick, Los Angeles, Cal., Howard M. Ehrenberg, Sulmeyer, Kupetz, Baumann & Rothman, Los Angeles, Cal., Jonathan R. Ellowitz, Newport Beach, Cal., Ross H. Espeseth, Law Offices of La Roy Baird, P.C., Bismarck, N.D.

James C. Fedalen, Rhodes & Fedalen, Encino, Cal., Vin Alan Fichter, Encino, Cal., J. Patrick Fleming, Jr., Los Angeles, Cal., Steven Fox and John Laing, Mission Hills, Cal., Bruce J. Gary, Sikora & Price, Inc., Santa Ana, Cal., A.J. Ghirardelli, San Fernando, Cal., Victor Epport, Epport & Richman, Los Angeles, Cal., Patricia Fanelli, Office of U.S. Congressman Robert K. Dorman, Garden Grove, Cal., Carolyn M. Fergoda, Pasadena, Cal., Charles L. Firestein, Lehman, Roach, Bauman, Dobbs & Firestein, Phoenix, Ariz., Jan M. Flory, Fullerton, Cal., Dennis Fried, Rosenthal & Smith, Encino, Cal., Mark Mitchell Geyer, Geyer & Cohen, P.C., Encino, Cal., Philip H. Gillin, Century City, Cal., John J. Gottes, South Gate, Cal., Herbert Graham, Sherman Oaks, Cal., Frank Gumbinger, Corona Del Mar, Cal., David Hagen, Hagen, Hagen & Hagen, Encino, Cal., Erik Hartman, Long Beach, Cal., Ronald M. Hellewell, Salem, Or., Robert K. Hillison, Fresno, Cal., Robert Marc Hindin, Law Offices of Robert Marc Hindin, Los Angeles, Cal., Robert Gouth, Sandbower, Gabler & O'Shaughnessy, Baltimore, Mass., Richard L. Grant, Law Office of Richard Grant, Tustin, Cal., Nancy Ann Guthrie, Leroy B. Taft, Los Angeles, Cal., Christopher A. Hall, Long, Ragsdale & Waters, Knoxville, Tenn., Kenneth L. Harvey, Manhattan Beach, Cal., Mark Hiepler, Sedgwick, Detert, Moran & Arnold, Los Angeles, Cal., Robert M. Himrod, Los Angeles, Cal., Thomas J. Hindman, Orten & Hindman, P.C., Denver, Colo., Yance Hirschy, Temecula, Cal., Jeff Howard, Howard & Associates, Newport Beach, Cal., Minoru Inadomi, Santa Ana, Cal., Neal D. Jacobs, James A. Steele, Woodland Hills, Cal., David A. Joffe, Brandes, Lane & Joffe, P.C., Phoenix, Ariz., Arthur T. Jones, Jones and Jones, Glendale, Cal., Jayne T. Kaplan, Los Angeles, Cal., Peter Klika, Klike, Liau & McIntosh, Pasadena, Cal., Joseph Hitrec, Santa Ana, Cal., Stanley A. Hutchinson, Fountain Valley, Cal., Murray Jackson, Los Angeles, Cal., Michael W. Jaenish, Salt Lake City, Utah, Gail S. Johnson, Associate V.P., Asst. Gen. Counsel, Prudential Securities, New York City, Stanley R. Jones, Layman, Jones & Dye, Irvine, Cal., Donn Kemble, Newport Beach, Cal., Kurt Kolar, Congressman Sensenbrenner, Washington, D.C., Kathryn Koorenny, Gibson, Dunn & Krutcher, Los Angeles, Cal., Elizabeth Kreitzer, Law Clerk, Law Offices of Mr. Williams, San Diego, Cal., Steven A. Kurowski, Marrillville, Ind.

Charles S. La Shelle, Austin, Tex., for National Western Life Ins. Co., Alfred J. Lakritz, Encino, Cal., James B. Lapin, Lapin & Herrick-Stare, P.C., Denver, Colo., Everett Laybourne, Baker & McKenzie, Los Angeles, Cal., Ronald K. Lipstone, Goldman, Gordon & Lipstone, Los Angeles, Cal., Jim Kosinski, Reno, Nev., Kenneth J. Kroopf, P.C., Monterey, Cal., Hiram W. Kwan, P.C., Los Angeles, Cal., Michael J. Lai, Bankers Trust Co., New York City, Ray Lapica, Lapica Law Corp., Riverside, Cal., Jeff Lauridson, Spray, Gould & Bowers, Tustin, Cal., Paul Lipman, Arter, Hadden, Lawler, Felix & Hall, Los Angeles, Cal., Chaim Magnum, Fountain Valley, Cal., Louis Magour, Los Angeles, Cal., Mel Markman, Tarzana, Cal., Scott H. McNutt, Severson & Werson, San Francisco, Cal., Jack Morgan, Morgan, Cheroski & Reamer, Torrance, Cal., Bruce Murdock, Law Offices of Bruce Murdock, Santa Rosa, Cal., David Nelson, Loeb & Loeb, Los Angeles, Cal., Roger Noorthoek, Southgate, Cal., Romon Oller, Santa Ana, Cal., David Margulies, Klonsky & Margulies, Woodland Hills, Cal., Bernard McNealy, Paralegal, Carson, Dann & Associates, Panorama City, Cal., Edward Montgomery, Pasadena, Cal., Geoffrey C. Mousseau, Los Angeles, Cal., Tom Musselman, Los Angeles, Cal., Donald J. Newman, Newman, Ahern, Chambliss & Banen, Phoenix, Ariz., Luis A. Ochoa, Deconcini McDonald Brammer Yetwin & Lacy, Tucson, Ariz., Jeff Osser, The Osser Law Offices, Beverly Hills, Cal., Karen Owens, Richmond & Richmond, Laguna Hills, Cal., John S. Parker, Fischbeck & Oberndorfer, La Mesa, Cal., Kenneth E. Peck, Denver, Colo., Paul A. Pereira, Thompson & Colegate, Riverside, Cal., Seymour Philips, Encino, Cal., David Pittman, Fullerton, Cal., Frank Ponce, Ponce & Corum, Hollywood, Cal., Dean Rallis, Baker & Hostetler, Los Angeles, Cal., Congressman Ron Packard, Carlsbad, Cal., Roger Patterson, Whittier, Cal., Martin K. Pelcin, Dixon, Howell, Westmoreland & Newman, Los Angeles, Cal., Ruth A. Phelps, Phelps Schwarz & Phelps, Pasadena, Cal., Alan Pitt, Pitt & Kraines, Beverly Hills, Cal., Michael Polk, Polk, Scheer & Prober, Tarzana, Cal., Alex Powell, Cornwell, Powell, Kearney & Hackette, Torrance, Cal., Judy Rasmussen, Madden, Jones & Cole, Long Beach, Cal., David M. Reaves, Ridenour, Swenson, Cleere & Evans, Phoenix, Ariz., Martin Refkin, Freeman, Freeman & Refkin, Woodland Hills, Cal., David E. Reynolds, Lewis, D'Amato, Brisbois & Bisgaard, Los Angeles, Cal., Mike Roberts, Lum, Roberts & Gutierrez, So. Pasadena, Cal., H. James Rosenberg, Law Offices of William H. Brownston, Studio City, Cal., Larry Rothman, Law Offices of Larry Rothman, Westminster, Cal., Dennis S. Roy, Brown, Wenfield & Canzoneri, Los Angeles, Cal., Paul Sala, Fennemore Craig, Phoenix, Ariz., John F. Reed, Los Angeles, Cal., Bernard Rethore, Daugherty, Alex & Tadano, Phoenix, Ariz., Randy Rhodes, Merrill Lynch, Los Angeles, Cal., Roger Rombro, Los Angeles, Cal., Richard Rosett, Los Angeles, Cal., Ken Rousch, Carlsbad, Cal., Michael D. Rubin, Rutan & Tucker, Costa Mesa, Cal., Marshall Sanders, Sanders, Firestein & Janeway, Encino, Cal., Joseph Sarfaty, Kurtzman & Sarfaty, Los Angeles, Cal., Walter Scott, W.B. Scott, Glendale, Cal., Richard Hudson Share, Frandzel & Share, Los Angeles, Cal., Ralph Sims, Law Offices of Brian N. Winn, Anaheim, Cal., Kaye Soloman, Sheppard Mullen, Los Angeles, Cal., Bruce Speiser, Los Angeles, Cal., Michael Steinberg, Los Angeles, Cal., Mark S. Stern, Stupar & Schuster, Milwaukee, Wis., Barry R. Schlom, Polston, Schwartz, Hamilton & Fenster, Beverly Hills, Cal., Kevin C. Sewell, Las Vegas, Nev., Randy Sherman, Newport Beach, Cal., Milon Smith, Smith & Hilclig, Torrance, Cal., Peter Sorenson, Sacks, Tierney, Kasen & Kerrick, Phoenix, Ariz., Chester C. Stauffacher, Sturgeon Bay, Wis., Creighton A. Stephens, Law Offices of Creighton A. Stephens, Agoura Hills, Cal., Bradley J. Stevens, O'Connor, Cavanaugh, Anderson, Westover, Killingsworth & Beshears, Phoenix, Ariz., Alan Stomel, Los Angeles, Cal., Ken Suzuki, Los Angeles, Cal., Leroy B. Taft, P.C., Los Angeles, Cal., Alan G. Tippie, Sulmeyer, Kupetz, Baumann & Rothman, Los Angeles, Cal., Pat Torres, Montrose, Cal., Michael Udalf, Jersey City, N.J., Christine Upton, Volk, Newman, Gralla & Karp, Los Angeles, Cal., Jeff Venderveen, Laguna Hills, Cal., David Sutterfield, Effingham, Ill., Jack Swafford, Pasadena, Cal., Bob Terry, Long Beach, Cal., Arthur Toll, Toll & Toll Law Offices, Los Angeles, Cal., Lanny M. Tron, Tron & White, Pasadena, Cal., Robert Dean Upp, Solana Beach, Cal., Carl H. Urist, Depository Trust Co., New York City, Vin Victor, Encino, Cal., Howard E. Vleerick, Downey, Cal., Jim Wachs, Cincinnati, Ohio, Michael D. Warner, Robinson Diamant Brill & Klausner, Los Angeles, Cal., Carl J. West, Hahn & Hahn, Pasadena, Cal., Mike White, Encino, Cal., Steve Williams, San Francisco, Cal., James Wolf, Grey Law of Ventura County, Inc., Ventura, Cal., Gary Wynn, Law Offices of Gary Wynn, Big Bear Lake, Cal., Walter Wabby, Law Offices of McKarus & Wabby, Encino, Cal., Steven Wade, Wade, Covington & Crowe, Ontario, Cal., Dan Weintraub, Law Offices of James P. Del Gulrcio, Beverly Hills, Cal., Lester F. Whalley, Gardena, Cal., James A. Whitehill, Whitehill West, P.C., Tucson, Ariz., Robert T. Wilson, Jr., Wilson & King, Jasper, Ala., Charles W. Wolfe, Larwill and Wolfe, Los Angeles, Cal., V. Kelley York, York, Morrissey & Woo, Santa Ana, Cal., Rudolph E. Zigmund, Pasadena, Cal.


ORDER

BILBY, Bankruptcy Judge.

I.

Until April 13, 1989, American Continental Corporation ("ACC") engaged in financial services and real estate activities. On April 13, 1989, ACC filed a Petition under Chapter 11 of the United States Bankruptcy Code. On April 14, 1989 the Federal Home Loan Bank Board ("FHLBB") found that ACC's principal subsidiary, Lincoln Savings and Loan Association ("Lincoln"), was operating in an unsafe and unsound manner and...

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