IN RE MARKAIR, INC.

BAP No. AK-93-1539-JRO. Bankruptcy Nos. A92-00476-HAR, A92-00477-HAR.

172 B.R. 638 (1994)

In re MARKAIR, INC., an Alaskan Corporation; Markair Express, Inc., an Alaskan Corporation, Debtors. AIRWORK CORPORATION, Appellant, v. MARKAIR EXPRESS, INC.; Markair, Inc., Creditors Committee of Markair, Inc., Creditors Committee of Markair Express, Inc., Safeco Credit Company, Inc., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided August 29, 1994.


Attorney(s) appearing for the Case

Harvey A. Strickon, New York City, for appellant.

Susan M. Freeman, Phoenix, AZ, for appellees.

Before JONES, RUSSELL and OLLASON, Bankruptcy Judges.


OPINION

JONES, Bankruptcy Judge:

OVERVIEW

Appellant Airwork Corp. repaired the debtor's damaged aircraft engine. The debtor moved the court to release to Airwork the insurance proceeds payable to the debtor for the loss. The unsecured creditors committee and Safeco, a secured creditor with an interest in both the engine and the insurance proceeds, resisted the motion. Airwork offered various theories to establish its sole rights to the proceeds...

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