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IN RE BENTLEY-RUSSELL, INC.

Bankruptcy No. 91-10373 B.

201 B.R. 354 (1996)

In re BENTLEY-RUSSELL, INC., Debtor.

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

October 4, 1996.

Attorney(s) appearing for the Case

John H. Heyer, Trustee, Olean, NY.

J. Richardson Lippert II, Cash & Lippert, P.C., Franklinville, NY, for the Bieleckis.

Donald J. Swanz, Franklinville, NY, for Boehmer Transportation Company.

CARL L. BUCKI, Bankruptcy Judge.

The Chapter 7 trustee of Bentley-Russell, Inc., has objected to the allowance of four proofs of claim filed on behalf of the stockholders of the debtor corporation. With support from one of the unsecured creditors, the trustee proposes to reclassify the claims as equity. Specifically, the trustee and creditor contend that due to the undercapitalization of the business, the claims of stockholders must be equitably subordinated to those...

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