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IN RE VISUAL INDUSTRIES, INC.

No. 94-5676.

57 F.3d 321 (1995)

In re VISUAL INDUSTRIES, INC., a Delaware Corporation, Stacor Corporation, a New Jersey Corporation, Debtors. PRECISION STEEL SHEARING, INC., Appellant, v. FREMONT FINANCIAL CORPORATION, Appellee.

United States Court of Appeals, Third Circuit.

Decided June 9, 1995.

Attorney(s) appearing for the Case

Michael B. Kaplan (argued), Stern, Lavinthal, Norgaard & Daly, Englewood, NJ, for appellant.

Joel R. Glucksman (argued), Tod S. Chasin, and Friedman Siegelbaum, Roseland, NJ, for appellee.

Before: COWEN, LEWIS and GARTH, Circuit Judges.

OPINION OF THE COURT

GARTH, Circuit Judge:

The Bankruptcy Code in § 506(c) provides that a secured creditor may be charged for expenses incurred by another in preserving or disposing of the secured property. 11 U.S.C. § 506(c). The question that is presented on this appeal and which we must answer is: "Does 11 U.S.C. § 506(c) authorize payment to trade creditors who furnish raw materials to a Chapter 11 debtor thereby maintaining the debtor...

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