IN RE GRANITE PARTNERS, L.P.

Bankruptcy Nos. 94 B 41683 to 94 B 41685 (SMB). Adv. No. 95/1646A.

194 B.R. 318 (1996)

In re GRANITE PARTNERS, L.P., Granite Corporation, and Quartz Hedge Fund, Debtors. Harrison J. GOLDIN, Trustee, Plaintiff, v. PRIMAVERA FAMILIENSTIFTUNG, TAG ASSOCIATES, LTD., Mark L. Friedman, Andrew Malloy, Information Systems & Networks Corporation, and Roma Malkani, Defendants.

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

As Corrected April 16, 1996.


Attorney(s) appearing for the Case

Willkie Farr & Gallagher, New York City (Benito Romano, John R. Oller, of counsel), for Plaintiff.

Gold Bennett & Cera LLP., San Francisco, California (Solomon B. Cera, of counsel), Sutherland Asbill & Brennan, New York City (Michael J. Levin, of counsel), for Primavera Familienstiftung.

Newman Tannenbaum Helpern Syracuse & Hirschtritt LLP., New York City (Vincent J. Syracuse, Ralph A. Siciliano, David A. Pellegrino, of counsel), for TAG Associates, Mark L. Friedman and Andrew Malloy.

Cleary Gottlieb Steen & Hamilton, New York City (Thomas Moloney, Bernadette Miragliotta, of counsel), for Kidder Peabody & Co., Inc.


MEMORANDUM DECISION GRANTING IN PART AND DENYING IN PART THE TRUSTEE'S MOTION FOR A PRELIMINARY INJUNCTION

STUART M. BERNSTEIN, Bankruptcy Judge.

This case may again prove the adage that something too good to be true probably isn't. Harrison J. Goldin, the chapter 11 trustee of the three debtors, seeks to enjoin the prosecution of two lawsuits and one arbitration brought by disgruntled investors and creditors against the debtors' insiders and...

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