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IN RE GOCO REALTY FUND I

Bankruptcy No. 92-5-3651-MM.

151 B.R. 241 (1993)

In re GOCO REALTY FUND I, a California limited partnership, fka Glenborough Operating Co., Ltd., a California limited partnership, Debtor.

United States Bankruptcy Court, N.D. California.

February 22, 1993.

Attorney(s) appearing for the Case

James L. Lopes, Janet A. Nexon, San Francisco, CA, for Howard, Rice, Nemerovski, Canady, Robertson & Falk.

Carl Anderson, Gary F. Torrell, Los Angeles, CA, for secured creditor, New West Federal Sav. & Loan Ass'n, and moving party.

John J. Bartko, John S. Lottier, San Francisco, CA, for Bartko, Tarrant & Miller.

David B. Draper, Redwood City, CA, for Ropers, Majeski, Kohn, Bentley, Wagner & Kane.

OPINION

MARILYN MORGAN, Bankruptcy Judge.

I. INTRODUCTION

The debtor, GOCO Realty Fund I ("GOCO"), a California Limited Partnership, paid its attorneys in excess of $725,000 prior to filing the bankruptcy petition. Of this sum, more than $500,000 was paid as a retainer for a suit against its only secured creditor, New West Federal Savings & Loan Association ("New West"). New West moved for the return of the pre-petition legal retainers arguing...

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