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IN RE BIDERMANN INDUSTRIES U.S.A., INC.

Bankruptcy Nos. 95 B 43098 through 43099 (TLB) and 95 43101 through 43114 (TLB).

203 B.R. 547 (1997)

In re BIDERMANN INDUSTRIES U.S.A., INC., f/a./a Blackstone, Inc., et al., Debtors.

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

January 7, 1997.

Attorney(s) appearing for the Case

Stevens & Lee, P.C. by Robert Lapowsky, Wayne, PA, Marks & Murase L.L.P. by Michael Z. Brownstein, New York City, for Debtors in Possession.

Otterbourg, Steindler, Houston & Rosen, P.C. by Scott L. Hazen, New York City, for the Official Committee of Unsecured Creditors.

Kasowitz, Benson, Torres & Friedman L.L.P. by David M. Friedman, New York City, for the Objectants.

CORRECTED TEXT OF BENCH RULING ISSUED DECEMBER 17, 1996

TINA L. BROZMAN, Chief Judge.

Thirty years ago Judge Henry Friendly, sitting on the Second Circuit Court of Appeals, declared that the conduct of bankruptcy proceedings not only should be right but must seem right. Knapp v. Seligson (In re Ira Haupt & Co.), 361 F.2d 164, 168 (2d Cir.1966). In this case, the fiduciaries...

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