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IN RE GENERAL DEVELOPMENT CORP.

Nos. 93-0597-Civ, 93-1378-Civ.

179 B.R. 335 (1995)

In re GENERAL DEVELOPMENT CORPORATION, et al., Debtors. Lillian SKOLNICK and Barnett Stepak, Plaintiffs/Appellants, v. ATLANTIC GULF COMMUNITIES CORPORATION f/k/a General Development Corporation, Defendant/Appellee.

United States District Court, S.D. Florida, Miami Division.

March 7, 1995.

Attorney(s) appearing for the Case

John Halebian, Wechsler, Skirnick, Harwood, Halebian & Feffer, New York City, Robert Yaffe, Steinberg, Slewett & Yaffe, P.A., Miami Beach, FL, for plaintiffs/appellants.

Greenberg & Traurig, Miami, FL, for defendant/appellee.

ORDER

K. MICHAEL MOORE, District Judge:

This bankruptcy appeal addresses the circumstances in which shareholders can pursue a derivative action after a corporation has filed for bankruptcy reorganization.

I. Factual and procedural background

Appellants are shareholders of the defunct General Development Corporation ("GDC"). In March 1990, Appellants commenced a derivative action against...

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