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IN RE MAXWELL NEWSPAPERS, INC.

Bankruptcy No. 91 B 15531. Adv. No. 93-9982A.

189 B.R. 282 (1995)

In re MAXWELL NEWSPAPERS, INC., Debtor. The OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF MAXWELL NEWSPAPERS, INC., Plaintiff, v. MACMILLAN, INC., Defendant.

United States Bankruptcy Court, S.D. New York.

December 14, 1995.

Attorney(s) appearing for the Case

Paul, Weiss, Rifkind, Wharton & Garrison by Robert D. Drain, Jeffrey D. Saferstein, Jennifer A. Kasmin, New York City, for Maxwell Macmillan Proceeds Liquidating Trust.

Kaye, Scholer, Fierman, Hays & Handler by Herbert S. Edelman, Scott M. Berman, Donna M. Gitter, New York City, for Headington Holdings, Ltd., London and Bishopsgate Group, Ltd. and Robert Maxwell Group, plc.

OPINION

TINA L. BROZMAN, Bankruptcy Judge.

Some time ago I ruled that Maxwell Newspapers, Inc. ("Maxwell Newspapers"), a chapter 11 debtor, was not liable to Mirror Group Newspapers, plc and certain of its affiliates (collectively, "MGN") for the diversion of MGN's assets to Maxwell Newspapers by their common principals because the diverted assets were promptly transferred to still other entities controlled by the principals without any benefit accruing...

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