IN RE CORNELL & CO., INC.

Bankruptcy No. 96-31650DAS.

219 B.R. 682 (1998)

In re CORNELL & COMPANY, INC., Debtor.

United States Bankruptcy Court, E.D. Pennsylvania.

April 14, 1998.


Attorney(s) appearing for the Case

Maureen Steady, Ciardi, Maschmeyer & Karalis, P.C., Peter F. Marvin, Toll, Ebby, Langer, & Marvin, Philadelphia, PA, for Debtor.

Magdeline D. Coleman, Sagot, Jennings & Sigmond, Philadelphia, PA, for Union.

Lawrence J. Tabas, Philadelphia, PA, for SEPTA.

Barry D. Kleban, Philadelphia, PA, for Creditors' Committee.

David C. Dreifuss, Nagel, Rice & Dreifuss, Livingston, NJ, for National Fire Insurance Co.

Frederic Baker, Ass't. U.S. Trustee, Philadelphia, PA, U.S. Trustee.


OPINION

DAVID A. SCHOLL, Chief Judge.

A. INTRODUCTION

The instant proof of claim litigation requires us to analyze several aspects of 11 U.S.C. § 507(a)(4) which appears to have escaped significant previous judicial scrutiny. We hold, consistent with the union's position in the matter before us, that this Code section extends fourth priority classification to all employee-benefit plan indebtedness arising within 180 days of a bankruptcy...

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