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IN RE ALLEN CARE CENTERS, INC.

Civ. No. 94-726-RE. Bankruptcy No. 390-36679-P7.

175 B.R. 397 (1994)

In re ALLEN CARE CENTERS, INC., an Oregon corporation, Debtor.

United States District Court, D. Oregon.

September 22, 1994.

Attorney(s) appearing for the Case

Theodore R. Kulongoski, Atty. Gen. of Or., Virginia L. Linder, Sol. Gen., Stephanie L. Striffler, Asst. Atty. Gen., Salem, OR, for appellant State of Oregon.

Gregg D. Johnson, Ater Wynne Hewitt Dodson & Skerritt, Portland, OR, for appellee Ronald G. Witcosky, Trustee.

OPINION

REDDEN, Chief Judge:

The State of Oregon, Department of Human Resources, Senior & Disabled Services Division (the State), appeals the order of Bankruptcy Judge Polly Higdon. 163 B.R. 180. Under that ruling, the State holds a general, unsecured claim and is not entitled to administrative expense priority under 11 U.S.C. § 503(b)(1)(A) for costs incurred in closing the debtor's nursing facility. Oral argument...

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