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IN RE LUZ INTER., LTD.

BAP No. CC-96-1887-JHT, Bankruptcy No. LA-91-10000 AA.

219 B.R. 837 (1998)

In re LUZ INTERNATIONAL, LTD., Debtor. Samuel R. BIGGS, Chapter 7 Trustee, Appellant, v. William STOVIN, and other interested underwriters at Lloyd's, London and other U.K. insurance companies; Luz International, LTD., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided February 25, 1998.

Attorney(s) appearing for the Case

Thomas M. Geher, Seror & Levine, Woodland Hills, CA, for appellant.

Julia W. Brand, Katten Muchin & Zavis, Los Angeles, CA, for William Stovin.

Before: JONES, HAGAN, and TCHAIKOVSKY, Bankruptcy Judges.

OPINION

JONES, Bankruptcy Judge.

The Debtor's chapter 72 trustee appeals from an order granting a creditor relief from the automatic stay and allowing the creditor to set off certain funds contained in a cash collateral account. The trustee claims the bankruptcy court committed two principal errors, one procedural, the other substantive. First, the trustee argues that the bankruptcy...

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