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IN RE CM HOLDINGS, INC.

Civ.A. No. 97-695 MMS.

221 B.R. 715 (1998)

In re CM HOLDINGS, INC., Camelot Music, Inc., G.M.G. Advertising, and Grapevine Records and Tape, Inc., Debtors. INTERNAL REVENUE SERVICE, Petitioner, v. CM HOLDINGS, INC., Respondent.

United States District Court, D. Delaware.

May 29, 1998.

Attorney(s) appearing for the Case

Gregory M. Sleet, United States Attorney, Ellen W. Slights, Assistant United States Attorney, U.S. Department of Justice, Wilmington, DE; of Counsel: Dennis M. Donohue, Alan J.J. Swirski, and Joseph A. Sergi, U.S. Department of Justice, Washington, DC, for Petitioner.

S. David Peress, of Young, Conway, Stargatt & Taylor, L.L.P., Wilmington, DE; of Counsel: Owen C. Pell, Howard S. Beltzer, and Kirk E. Sheriff, of White & Case, New York City, for Respondent.

OPINION

MURRAY M. SCHWARTZ, Senior District Judge.

I. Introduction

CM Holdings, Inc., Camelot Music, Inc., G.M.G. Advertising, Inc. and Grapevine Records and Tapes, Inc. (collectively "Camelot") filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code ("Chapter 11") with the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court").1 Under 28 U.S.C. § 157(a)

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