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IN RE PRIME MOTOR INNS, INC.

Bankruptcy No. 90-16604-BKC-AJC. Adv. No. 91-1240-BKC-AJC-A.

167 B.R. 261 (1994)

In re PRIME MOTOR INNS, INC., et al., Debtors. PMI INVESTMENT, INC., Plaintiff, v. Allan V. ROSE, Arthur G. Cohen, and Financial Security Assurance Inc., Defendants. FINANCIAL SECURITY ASSURANCE INC., Counterclaim-Plaintiff, v. PMI INVESTMENT, INC., Counterclaim-Defendant.

United States Bankruptcy Court, S.D. Florida, Miami Division.

As Amended May 12, 1994.

Attorney(s) appearing for the Case

Stephen D. Busey, Smith Hulsey & Busey, Jacksonville, FL, and Steven H. Reisberg, Willkie Farr & Gallagher, New York City, for PMI Inv., Inc.

Eric Roth, Wachtell Lipton Rosen & Katz, New York City, and Brian K. Gart, Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A., Miami, FL, for Financial Sec. Assur., Inc.

Marshall J. Cooper, P.A., Fort Lauderdale, FL, for Allan V. Rose and Arthur G. Cohen.

Mark J. Sugarman, Robinson, Silverman, Pearce, Aronsohn & Berman, New York City, for Allan V. Rose.

George Wade, Shearman & Sterling, New York City, for Committee of Unsecured Creditors.

Robert A. Angueira, Miami, FL, Asst. U.S. Trustee.

MEMORANDUM DECISION

A. JAY CRISTOL, Chief Judge.

This cause came before this Court for trial on January 18, 19 and 20, 1994. The Court having reviewed the testimonial and documentary evidence, and having had the opportunity to observe the demeanor and candor of the witnesses at the trial, makes the following findings of fact and conclusions of law in accordance with Federal Rules of Bankruptcy Procedure 7052.

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