IN RE NUTRI/SYSTEM, INC.

Bankruptcy Nos. 93-12725DAS, 93-14121DAS. Adv. Nos. 93-0941DAS, 93-0942DAS.

169 B.R. 854 (1994)

In re NUTRI/SYSTEM, INC., Debtor. MB LIMITED PARTNERSHIP, Donald L. Smith and Virginia L. Vanmaanen, doing business as Whittier Plaza, Allies Amboy Company, Washington Mutual Savings Bank, Ansel Properties, Inc., Angelo S. Mallozzi, Westmont Enterprises, Preef Mid America/East-V Rosedale Square, Inc., the Clinton Employment Lender Associates, L.P., Harlington Realty Corporation, the J.S. Company, Foothill & La Crescenta Associates, and Morse Road Company, on behalf of themselves and all others similarly situated, Plaintiffs, v. NUTRI/SYSTEM, INC., Heico Acquisition Co., Inc., Heico Cosmetic, Inc., formerly Heico Food Acquisition, Inc., NSI Debt, Inc., and NSI Acquisition Limited Partnership, Defendants. In re NUTRI/SYSTEM OF FLORIDA ASSOCIATES, Debtor. ANSEL PROPERTIES, INC. and Preef Mid America/East-IV, Inc., on behalf of themselves and all others similarly situated, Plaintiffs, v. NUTRI/SYSTEM OF FLORIDA ASSOCIATES, Heico Acquisition Co., Inc., Heico Cosmetic, Inc., formerly Heico Food Acquisition, Inc., NSI Debt, Inc., and NSI Acquisition Limited Partnership, Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

July 8, 1994.


Attorney(s) appearing for the Case

Nicholas J. LePore, III, Schnader, Harrison, Segal & Lewis, Philadelphia, PA, for debtors.

Howard T. Glassman, Andrew D. Bershad, Blank, Rome, Comisky & McCauley, Philadelphia, PA, for plaintiffs.

Bruce Sperling, Sperling, Slater & Spitz, Chicago, IL, for Heisley entities.

John Francis Gough, Montgomery, McCracken, Walker & Rhoads, Philadelphia, PA, for Franchisees' Committee.

Donald Harrison, Klehr, Harrison, Harvey, Branzburg & Ellers, Philadelphia, PA, for Bank Group.

Robert A. Hendricks, Varnum, Riddering, Schmidt & Howlett, Grand Rapids, MI, David N. Ravin, Ravin Sarasohn Cook Baumgarten Fisch & Baime, Roseland, NJ, for Creditors' Committee.

Frederic Baker, Asst. U.S. Trustee, Philadelphia, PA.


OPINION

DAVID A. SCHOLL, Chief Judge.

A. INTRODUCTION

The two instant adversary proceedings ("the Proceedings"), permitted to be maintained as class actions pursuant to Federal Rule of Bankruptcy Procedure ("F.R.B.P.") 7023 and Federal Rule of Civil Procedure ("F.R.Civ.P.") 23(b)(3), represent efforts by the named plaintiffs, on behalf of all former landlords of the Debtors' stores ("the Landlords...

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