MATTER OF LIFSCHULTZ FAST FREIGHT

No. 96-1362.

132 F.3d 339 (1997)

In the Matter of: LIFSCHULTZ FAST FREIGHT, doing business as Lifschultz Fast Freight Corporation, Debtor. Appeal of: SALSON EXPRESS COMPANY, INCORPORATED.

United States Court of Appeals, Seventh Circuit.

Decided December 10, 1997.


Attorney(s) appearing for the Case

Anthony V. Ponzio (argued), Chicago, IL, for Appellant.

Michael W. Rathsack (argued), Soo Line Railroad Co., Chicago, IL, for Debtor and Bruce E. De'Medici, Trustee.

Before CUDAHY, MANION, and ROVNER, Circuit Judges.


CUDAHY, Circuit Judge.

In a case under chapter 7 of the Bankruptcy Code, the trustee requested the bankruptcy court to equitably subordinate a creditor's secured claim that was based on the creditor's loan to the debtor. Equitable subordination of a claim moves the creditor down in the order of payment out of the assets in the bankruptcy estate, generally reducing (or eliminating) the amount the creditor can recover. In this case, the trustee argued that the loan...

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