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IN RE BONNER MALL PARTNERSHIP

No. 92-36754.

2 F.3d 899 (1993)

In re BONNER MALL PARTNERSHIP, Debtor. BONNER MALL PARTNERSHIP, Plaintiff-Appellee, v. U.S. BANCORP MORTGAGE CO., Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Decided August 4, 1993.

Attorney(s) appearing for the Case

Bradford Anderson, Stoel, Rives, Boley, Jones & Grey, Seattle, WA (argued); Dale G. Higer, Stoel, Rives, Boley, Jones & Grey, Boise, ID (on briefs), for defendant-appellant.

Ford Elsaesser (argued), Barbara Buchanan (on briefs), Elsaesser, Jarzabek, Buchanan and Dressel, Sandpoint, ID, for plaintiff-appellee.

Before: WRIGHT, CANBY and REINHARDT, Circuit Judges.

REINHARDT, Circuit Judge:

This case requires us to decide whether the new value "exception" to the absolute priority rule survives the enactment of the Bankruptcy Reform Act of 1978 (better known as the Bankruptcy Code), which replaced the Bankruptcy Act of 1898.1 The new value exception allows the shareholders of a corporation in bankruptcy to obtain an interest in the reorganized debtor in exchange for new capital contributions over...

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