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IN RE USM TECHNOLOGY CORP.

Bankruptcy No. 92-56411-JRG, Adv. No. 92-5672.

158 B.R. 821 (1993)

In re USM TECHNOLOGY CORPORATION, Debtor. USM WORKERS' COMMITTEE, Plaintiff, v. Suzanne DECKER, Chapter 7 Trustee for the Estate of USM Technology Corporation; Silicon Valley Bank, Defendants.

United States Bankruptcy Court, N.D. California.

September 16, 1993.

Attorney(s) appearing for the Case

James K. Cameron, Thomas M. Kim, LeBoeuf, Lamb, Leiby & MacRae, San Francisco, CA, for 96 former employees of USM Technology Corp. aka the "USM Workers' Committee."

Timothy H. Hopkins, Hopkins & Carley, San Jose, CA, for defendant Silicon Valley Bank.

John A. Butler, III, Mountain View, CA, for trustee.

OPINION

JAMES R. GRUBE, Bankruptcy Judge.

I. INTRODUCTION.

Debtor's former employees seek a declaration that their right to receive unpaid wages from proceeds of "goods" produced in violation of the Fair Labor Standards Act1 (the "FLSA") (colloquially known as "hot goods")2 is superior to the rights of a creditor holding a perfected security interest in Debtor's...

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