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IN RE FIRST CAPITAL HOLDINGS CORP.

Bankruptcy No. LA 91-75518 SB.

146 B.R. 7 (1992)

In re FIRST CAPITAL HOLDINGS CORP., First Capital Life Insurance Group Inc., and Fidelity Bankers Life Insurance Group Inc., Debtors.

United States Bankruptcy Court, C.D. California.

September 18, 1992.

Attorney(s) appearing for the Case

Lee H. Godfrey of Susman, Godfrey LPC, for creditors.

Jeffrey Krause of Stutman, Treister & Glatt, for debtor.

SAMUEL L. BUFFORD, Bankruptcy Judge.

I. INTRODUCTION

The motion before the Court raises the issue of whether and under what circumstances a creditors' committee may prosecute claims on behalf of a chapter 11 debtor without first making a formal demand upon the debtor to prosecute the claims.

The Court holds that it has discretion to excuse the requirement of a demand upon a chapter 11 debtor as futile when the creditors' committee's complaint is...

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