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IN RE CAROLINCH CO.

Bankruptcy No. 96-11200DAS, Adversary No. 97-0228DAS.

210 B.R. 518 (1997)

In re The CAROLINCH COMPANY, Debtor. Katharina PALNIK, Plaintiff, v. UNITED STATES of America, Defendant.

United States Bankruptcy Court, E.D. Pennsylvania.

July 15, 1997.

Attorney(s) appearing for the Case

Brendan J. Sherman, Ciardi, Maschmeyer & Karalis, Philadelphia, PA, for Debtor.

Nicholas J. Scafidi, Philadelphia, PA, for Plaintiff.

Thomas M. Rath, Philadelphia, PA, for Internal Revenue Service.

Gregory S. Hrebiniak, U.S. Dept. of Justice, Washington, DC, for Internal Revenue Service.

MEMORANDUM

DAVID A. SCHOLL, Chief Judge.

THE CAROLINCH COMPANY ("the Debtor"), formerly a manufacturer of electroplating, filed a voluntary petition under Chapter 11 of the Bankruptcy Code on February 13, 1996. The Debtor remained in Chapter 11 for almost a year in attempting to reorganize in a manner that it could remain in business. However, prior to confirmation, it determined that these efforts to continue its business would be fruitless. The...

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