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IN RE KING STREET INVESTMENTS, INC.

BAP No. NC-97-1377-RySmMe, Bankruptcy No. 95-11922.

219 B.R. 848 (1998)

In re KING STREET INVESTMENTS, INC., fka Hardin Mortgage and Investments, Inc., Debtor. Tommy J. HARDIN and Ann Hardin, Appellants, v. Louis R. GIANNI, Alice M. Porsche, James D. Porsche, and Mary Ann Davis, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided March 16, 1998.

Attorney(s) appearing for the Case

Thomas P. Kelly, Jr., Abbey, Weitzenberg, Kelly, Nadler, Hoffman & Emery, Santa Rosa, CA, for Tommy J. Hardin and Ann Hardin, appellants.

Marvin Pederson, Santa Rosa, CA, for Louis R. Gianni, Alice M. Porsche, Mary Ann Davis and James D. Porsche, appellees.

Before: RYAN, SMITH, and MEYERS, Bankruptcy Judges.

OPINION

RYAN, Bankruptcy Judge.

Creditors Tommy and Ann Hardin ("Appellants"), former principals and insiders of King Street Investments, fka Hardin Mortgage and Investment, Inc. ("Debtor"), a now defunct mortgage broker, filed an objection (the "Objection") to the claims of James and Alice Porsche, Mary Ann Davis, and Louis Gianni ("Appellees"). The Objection is based on Appellees' acceptance of a deed in lieu of foreclosure (the "Deed") of a vacant...

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