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IN RE ELSINORE CORP.

BAP No. NV-97-1544-MeRRy, Bankruptcy Nos. 95-24685-RCJ, 95-24689-RCJ, 95-24688-RCJ and 95-24686-RCJ.

228 B.R. 731 (1998)

In re ELSINORE CORPORATION, Elsub Management Corporation, Palm Springs East Limited Partnership, and Four Queens, Inc., Debtors. Plaintiff's Class Claimants in New Jersey Actions, Appellants, v. Elsinore Corporation; et al., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 23, 1998.

Attorney(s) appearing for the Case

Andrew J. Kahn, San Francisco, CA, for Plaintiff's.

Thomas H. Fell, Gordon & Silver, Las Vegas, NV, for Appellees.

Before: MEYERS, RUSSELL and RYAN, Bankruptcy Judges.

OPINION

MEYERS, Bankruptcy Judge.

I

The debtor was a holding company which had interests in several hotels and casinos, including the Atlantis Hotel and Casino ("Atlantis") in New Jersey. Former employees of the Atlantis sought priority treatment under 11 U.S.C. § 507(a)(3) for wages earned within 90 days of the cessation of the Atlantis. The bankruptcy court ruled that since the debtor was still functioning as a business at the time...

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