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  5. 143 B.R. 232 (1992)
 

IN RE FAMILY HEALTH SERVICES, INC.

Nos. SACV 89-695-GLT, 89-696-GLT, 89-796-GLT, 89-898-GLT, 90-672-GLT and 90-682-GLT.

143 B.R. 232 (1992)

In re FAMILY HEALTH SERVICES, INC., et al., Debtors.

United States District Court, C.D. California.

July 8, 1992.

Attorney(s) appearing for the Case

Milgrim Thomajan & Lee P.C., Stanley McDermott, III, Carole Neville, Peter M. Corrigan, New York City, Milgrim Thomajan & Lee, Barry L. Burten, Los Angeles, Cal., for debtors.

Asst. Atty. Gen., Fred Nepple, Gen. Counsel, Office of the Com'r of Ins., State of Wis., Madison, Wis., La Follette & Sinykin, Brady C. Williamson, Jonathan C. Aked, Madison, Wis., Manatt, Phelps, Phillips & Kantor, Simon Aron, Todd W. Mathers, Los Angeles, Cal., for appellants Wisconsin Ins., Sec. Fund and Robert D. Haase, Com'r of Ins. for the State of Wis.

RULING ON APPEAL

GARY L. TAYLOR, District Judge.

In this bankruptcy appeal, the court holds that a health maintenance organization ("HMO") licensed, regulated, and conducting business in a state as a domestic insurance company, constitutes a domestic insurance company under 11 U.S.C. § 109(b), and is not eligible for bankruptcy protection.

I. BACKGROUND

Debtor Maxicare Health Insurance Company and its 48 affiliates (collectively "Maxicare...

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