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IN RE CRYSTAL APPAREL, INC.

Bankruptcy Nos. 94 B 40318(PCB) through 94 B 40329(PCB).

220 B.R. 816 (1998)

In re CRYSTAL APPAREL, INC., et al., Debtors.

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

April 16, 1998.

Attorney(s) appearing for the Case

Shereff, Friedman, Hoffman & Goodman, LLP by Shalom Jacob, Lorri Staal Rosen, New York City, for Michael B. McLearn and Gerald M. Chaney.

Wachtell, Lipton, Rosen & Katz by Theodore Gewertz, David Bryan, New York City, for the Unofficial Committee of Institutional Lenders.

Cleary, Gottlieb, Steen & Hamilton by Thomas J. Moloney, Shari Siegel, New York City, for the Official Committee of Unsecured Creditors.

MEMORANDUM DECISION GRANTING MOTION FOR SUMMARY JUDGMENT OF DEBTORS AND DENYING CROSS-MOTION OF CLAIMANTS

PRUDENCE CARTER BEATTY, Bankruptcy Judge.*

This court has already ruled on this matter once. However, following an appeal, the matter was remanded for further consideration. Two former employees, Michael B. McLearn ("McLearn") and Gerald B. Chaney ("Chaney") (collectively the "Claimants"), of one of these Chapter 11...

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