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IN RE IONOSPHERE CLUBS, INC.

Nos. 1018, 1019, Dockets 93-5079, 93-5081.

17 F.3d 600 (1994)

In re IONOSPHERE CLUBS, INC., Eastern Air Lines, Inc., Bar Harbor Airways, Inc., Debtors. Frank SOBCHACK, Frank Kenneth Sobchack, Rhett G. Cooper, Jr., Annie Cooper, and Official Committee of Preferred Shareholders of Eastern Air Lines, Inc., Appellants, v. AMERICAN NATIONAL BANK & TRUST COMPANY OF CHICAGO, Mary Grace Shore, as assignees of the Eastern Estate, Martin R. Shugrue, Jr., As Chapter 11 Trustee of the Eastern Estate, Appellees.

United States Court of Appeals, Second Circuit.

Decided March 1, 1994.

Attorney(s) appearing for the Case

Martin S. Siegel, New York, N.Y. (Berlack, Israels & Liberman, New York, N.Y.), for appellant The Official Committee of Preferred Shareholders of Eastern Air Lines, Inc.

Arthur Abbey, New York, N.Y. (Jill S. Abrams, Abbey & Ellis, New York, N.Y.), for appellants Frank Sobchack, Frank Kenneth Sobchack, Rhett G. Cooper, Jr. and Annie Cooper.

Adam C. Harris, New York, N.Y. (O'Melveny & Myers, New York, N.Y.), for appellees American National Bank and Trust Company of Chicago and Mary Grace Shore, as Assignees of the Eastern Estate.

Daniel J. King, New York, N.Y. (King & Spalding, on the brief), for appellee Martin R. Shugrue, Jr., as Chapter 11 Trustee of the Eastern Estate.

Before: PRATT, WALKER, and LEVAL, Circuit Judges.

LEVAL, Circuit Judge:

This appeal arises out of the administration of the bankruptcy estate of Eastern Airlines, Inc. ("Eastern") in the United States Bankruptcy Court for the Southern District of New York. The appeal involves the question whether the bankruptcy court, Burton R. Lifland, J., acted in accordance with law in enjoining the holders of Eastern preferred stock from bringing claims based on breach of fiduciary duty and tortious interference with contract...

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