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IN RE SPAULDING COMPOSITES CO., INC.

BAP No. CC-94-2174-RUMEJ, Bankruptcy No. LA 93-16711 CA, Adversary No. LA 94-02784 CA.

207 B.R. 899 (1997)

In re SPAULDING COMPOSITES COMPANY, INC., a New Hampshire Corporation, Debtor. LIBERTY MUTUAL INSURANCE COMPANY, Appellant, v. OFFICIAL UNSECURED CREDITORS' COMMITTEE OF SPAULDING COMPOSITES CO.; United States Trustee; Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided February 26, 1997.

Attorney(s) appearing for the Case

Thomas W. Dressler, Dressler, Rein & Rayle, Los Angeles, CA, for Liberty Mut. Ins. Co.

Dolores Yarmoff-Nelson, Westlake Village, CA, for Official Committee of Unsecured Creditors.

Peter J. Herzberg, Pitney, Hardin, Kipp & Szuch, Morristown, NJ, for Caldwell Trucking Co. Superfund PRP.

Before: RUSSELL, MEYERS, and JONES, Bankruptcy Judges.

OPINION

DAVID E. RUSSELL, Bankruptcy Judge:

OVERVIEW

The debtor filed a chapter 11 petition seeking protection from creditors alleging the debtor's liability for pollution remediation costs. After the filing, the debtor's insurer filed suit in state court to obtain a declaratory judgment of its liability to the debtor's corporate shareholders under insurance policies issued to both the debtor and these corporate affiliates. The unsecured...

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