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MATTER OF ZALE CORP.

No. 94-10497.

62 F.3d 746 (1995)

The Matter of ZALE CORPORATION, Debtor. Alan D. FELD, and National Union Fire Insurance Company, Inc., of Pittsburgh, Pennsylvania, Appellants, v. ZALE CORPORATION, et al., Appellees.

United States Court of Appeals, Fifth Circuit.

September 7, 1995.

Attorney(s) appearing for the Case

Marvin S. Sloman, Russell F. Nelms, Jeffrey S. Levinger, Carrington, Coleman, Sloman & Blumenthal, Dallas, TX, Alan L. Busch, Robert Ruotolo, Busch, Ryan & Seib, Dallas, TX, for Feld.

Paul D. Schoonover, Richard G. Dafoe, Vial, Hamilton, Koch & Knox, Dallas, TX, Pat Long, Paton, Boggs & Blow, Dallas, TX, Eric C. Rowe, Greensboro, NC, for Nat. Union Fire of Pittsburgh, PA.

Kevin B. Getzendanner, J. Randolph Evans, Debra G. Buster, Arnall, Golden & Gregy, Atlanta, GA, for CIGNA Ins.

James D. McCarthy, David C. Kent, Hughes & Luce, Dallas, TX, for Jewel Recovery, L.P. and appellees.

Before POLITZ, Chief Judge, and EMILIO M. GARZA and STEWART, Circuit Judges.

EMILIO M. GARZA, Circuit Judge:

Alan D. Feld and National Union Fire Insurance Company ("NUFIC" or "National Union") appeal the district court's affirmance of the bankruptcy court's approval of a settlement entered in the bankruptcy proceedings of Zale Corporation and its affiliates (collectively "Zale" or "the debtor"). We reverse and remand.

I

More than two years prior to the approval of the settlement...

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